Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 61

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 61
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 the effort may not be able to fulfill its agreements, thereby resulting in lower sales, revenue         
 and profitability compared to expectations heading into such an arrangement. There is a risk the staff of the co-location partner does        
 not represent our brand properly to consumers, or creates confusion about the brand or the products, or otherwise encourage consumers         
 to skip purchasing our brands in favor of trying and purchasing their own brands. Likewise, there is a risk the co-location partner accuses   
 our retail employees of not representing the co-located brand properly to consumers, or creating confusion about the brand or the products,   
 or otherwise is accused of encouraging consumers to skip purchasing those brands in favor of trying and purchasing our own brands. There      
 is a risk the other brand owner cannot pay their debts, becomes insolvent, files for bankruptcy, is foreclosed upon or otherwise must         
 cease operations, in which case we could have a co-located presence without a corresponding co-location partner to fulfill its terms          
 of the agreement. In such a case, it may also be that we lose the right to continue using the co-located space to market and sell our         
 products. There is also a risk that the entity with which we have co-located, or one of its employees, managers, executives, directors,       
 or prominent shareholders, does or says something to cause harm to the co-located product and our brand by association.                       |

| ● | Other collaborative arrangements with brands, producers,                                                                              
 partners, or celebrities — We may enter into collaborative agreements with other brands, producers, partners, or                      
 celebrities. There is a risk that those collaborative partners might not fulfill their obligations under the agreements, or they may  
 not pay fees or royalties due to us. They may use licenses from us in an inappropriate way inconsistent with our company, our brands, 
 or the terms of the license. There is a risk they could do or say something to cause harm to our brand or the collaboration effort by 
 association.                                                                                                                          |

35 Any one or more of the above risks, if they materialize, could result in lower sales, less revenue than anticipated, less profit than anticipated or a reduction in the value of our brands or reputation or value, which could have a material adverse effect on our business or operating results. From time to time, we may become subject to litigation specifically directed at the alcoholic beverage industry, as well as litigation arising in the ordinary course of business. Companies operating in the alcoholic beverage industry may, from time to time, be exposed to class action or