Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 80

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 80
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 its obligations under the relationship, which may subject us to losses over which we have no control or expensive termination arrangements. As a result, even if our strategic alliances with third parties are successful, our business may be adversely affected by factors outside of our control. Our strategy may include acquiring companies or brands, which may result in unsuitable acquisitions or failure to successfully integrate acquired companies or brands, which could lead to reduced profitability. We may embark on a growth strategy through acquisitions of companies or operations that complement our existing product lines, customers or other capabilities, such as our recent acquisition of Thinking Tree Spirits. We may be unsuccessful in identifying suitable acquisition candidates or may be unable to consummate desired acquisitions. To the extent any acquisitions are completed, we may be unsuccessful in integrating acquired companies or their operations, or if integration is more difficult than anticipated, we may experience disruptions that could have a material adverse impact on future profitability. Some of the risks that may affect our ability to integrate, or realize any anticipated benefits from, acquisitions include: •unexpected losses of key employees or customers of the acquired company; •difficulties integrating the acquired company’s products, services, standards, processes, procedures and controls; •difficulties coordinating new product and process development; •difficulties hiring additional management and other critical personnel; •difficulties increasing the scope, geographic diversity and complexity of our operations; •difficulties consolidating facilities or transferring processes and know -how; •difficulties reducing costs of the acquired company’s business; •diversion of management’s attention from our management; and •adverse impacts on retaining existing business relationships with customers. Our recent acquisition of Thinking Tree Spirits could present several challenges or potential liabilities that could adversely affect our business, including the following: •we may not be able to fully integrate the acquired brands or products into our platform; •we may not be able to recover the cost of the investment in a way that makes the acquisition profitable or a good decision; •we may suffer reputational harm in the communities in which Thinking Tree Spirits is located from people who object to a local business being acquired; •we may not have been given all relevant information during our due diligence process, which could have affected our decision to proceed with the acquisition or could have allowed us to renegotiate the purchase price or other terms; •we are obligated by certain earn -outprovisions of our purchase contract to issue to the sellers of Thinking Tree Spirits additional shares of our common stock over the next three years if the Thinking Tree Spirits brands grow in revenue