Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 214

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 214
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 and experienced team; an on -rampfor national distribution growth; a unique go -to -marketgrowth route through the TBN; and creative marketing strategies. We believe few participants in the craft spirits segment can point to a similar collection of assets and opportunities. The Kentucky Distillers Association reported in October 2025 a record 16.1million barrels of Kentucky bourbon were aging in warehouses in the state, the highest number ever. Historically, at steady -state, there were approximately 3.8 million barrels aging at any time. This huge increase in aging bourbon comes from the entry of numerous investors who bought into large lots of bourbon barrels anticipating prices would continue to rise as they let them sit in warehouses to age. It also reflects the record number of new distillers entering the market. As a result of the volume of supply in the state, and with more being made and even more production capacity coming online, prices for barrels of premium -qualityKentucky bourbon are falling. We now have access to our pick of premium -agedKentucky bourbon that we use to supplement for our Salute Seriesline of whiskey. Just as we are increasing volume and sales of the Salute Seriesline, our biggest input cost — premium Kentucky bourbon — is coming down significantly. We believe this represents a significant arbitrage opportunity in our favor and we do not yet see signs of the falling prices for barrels of premium -qualityKentucky bourbon finding a floor. Regulatory Matters Along with our distributors, retail accounts and ingredients and packaging suppliers, we are subject to extensive regulation in the United States by federal, state and local government authorities with respect to registration, production processes, product attributes, packaging, labeling, storage and distribution of the craft spirits, RTD canned cocktails and other products we produce. When we work with tribes, we are also subject to certain tribal requirements. 124 We are subject to state and local tax requirements in all states in which our products are sold, as well as federal excise taxes on spirits we remove from bond. We monitor the requirements of relevant jurisdictions to maintain compliance with all tax liability and reporting matters. In states in which we maintain distilleries and tasting rooms, we are subject to several governmental authorities, including city and county buildings, land use, licensing and other codes and regulations. We have contracted with a third party to manage our regulatory licensing and renewal activities. We maintain licenses that enable us to distribute our craft spirits and RTD pre -mixedcocktails in multiple states and we work with third -partyretail