Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 52

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 52
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 call. Conversely, if we choose to participate in a capital call, there is no guarantee of success
or a return on such an investment. If an investor invests in us assuming a certain return or share in proceeds from the growth or sale
of the Flavored Bourbon brand because of our current ownership level in FBLLC, such investor may never realize such returns, or
the value of such investor’s investment in us could decrease materially. In the first quarter 2024, FBLLC completed approximately
$10 million of a planned $12 million capital call to fund growth in its operations and marketing. We have no view to when, or if, the
final $2 million will be raised via this facility and there should be no expectation that we will participate in the remainder of that
offering this year.

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An interruption of our operations or a catastrophic event at our facilities or the facilities of a partner or supplier could negatively affect our business.

Although we maintain insurance coverage for various
property damage and loss events, an interruption in or loss of operations at any of our distilleries or other production facilities could
reduce or postpone production of our products, which could have a material adverse effect on our business, results of operations, or financial
condition. To the extent that our premium or value-added products rely on unique or proprietary processes or techniques, replacing lost
production by purchasing from outside suppliers would be difficult.

Part of our business plan contemplates our customers
storing barreled inventory of aged premium whiskeys, rums and brandies at our barrel storage facility in Gig Harbor, Washington. If a
catastrophic event were to occur at this facility or at our warehouses, our customers’ products or business could be adversely affected.
The loss of a significant amount of aged inventory at these facilities through fire, natural disaster or otherwise could result in customer
claims against us, liability for customer losses, and a reduction of warehouse services revenue.

We also store a substantial amount of our own inventory
at our distribution warehouses in Gig Harbor, Washington and Eugene, Oregon. In addition, we store finished goods and merchandise at all
of our retail locations. Some of our raw inputs are stored at supplier warehouses until we are ready to receive them. At times we have
raw goods, work-in-progress inventory, or finished goods at third-party production or co-packing facilities, or in transit between any
number of locations. If a catastrophic event were to occur at any of