Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024420
Chunk: 143

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 143
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 customer digital assets were lost. While we do not use ByBit as a custodian, and ByBit was able to make all of its customers whole      
 through use of reserves and insurance policies, there is no contractual guarantee that our custodians will do the same, or that legal   
 recourse, insurance or indemnitees will cover any losses we may incur as a result of any security breaches, cyberattacks, or other      
 malicious activities.                                                                                                                   |
| 15. | Counterparty,                                                                                                                           
 rehypothecation, and bankruptcy estate risks. Although we have implemented various measures that are designed to mitigate our           
 counterparty risks, including by storing substantially all of the $IP we own in custody accounts at U.S.-based, institutional-grade     
 custodians and negotiating contractual arrangements intended to establish that our property interest in custodially-held $IP is not     
 subject to claims of our custodians’ creditors, applicable insolvency law is not fully developed with respect to the holding            
 of digital assets in custodial accounts. If our custodially-held $IP were nevertheless considered to be the property of our custodians’ 
 estates in the event that any such custodians were to enter bankruptcy, receivership or similar insolvency proceedings, we could        
 be treated as a general unsecured creditor of such custodians, inhibiting our ability to exercise ownership rights with respect to      
 such $IP, or delaying or hindering our access to our $IP holdings, and this may ultimately result in the loss of the value related      
 to some or all of such $IP. Additionally, digital asset lending arrangements may expose us to risks of borrower default, operational    
 failures and cybersecurity threats.                                                                                                     |
| 16. | Banking/de-banking                                                                                                                      
 risk. A number of companies and individuals or businesses associated with digital assets may have had and may continue to have          
 their existing banking services discontinued with financial institutions. Although U.S. banking regulators have recently rescinded      
 prior guidance which emphasized the risks associated with digital asset businesses, it is possible that some banking institutions       
 may remain unwilling to provide services to companies in the digital asset space. Loss of access to fiat rails (after failures of       
 crypto-friendly banks or policy shifts) may delay settlements, tax payments, or vendor obligations, impairing liquidity.                |
| 17. | Irreversibility                                                                                                                         
 of digital asset transactions. The irreversibility of digital asset transactions exposes us to risks of theft, loss and human           
 error,