Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 55

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 55
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asters. Severe weather events and climate change may negatively affect agricultural productivity in the regions from which we presently
source our agricultural raw materials. Decreased availability of our raw materials may increase the cost of goods for our products. Severe
weather events, or changes in the frequency or intensity of weather events, can also disrupt our supply chain, which may affect production
operations, insurance cost and coverage, as well as delivery of our products to wholesalers, retailers and consumers.

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Water is essential in our product production and
is a limited resource in some of the regions in which we operate. If climate patterns change and droughts become more severe in any of
the regions in which we operate, there may be a scarcity of water or poor water quality which may affect our production costs or impose
capacity constraints. Such events could adversely affect the results of operations and financial condition.

During the fermentation process required to make
spirits, carbon dioxide is produced and vented into the atmosphere. Currently there are no regulations in the industry requiring capture
of carbon dioxide. If a government decided to implement such requirements, it might not be technically feasible for us to comply, or to
comply in a way that allows us to operate profitably. Failure to implement any such rules could result in temporary or permanent loss
of licenses, fines, penalties or other negative outcomes for us.

The equipment we use and intend to purchase in the future to make our products or offer our services may not perform as planned or designed.

The equipment we use and intend to purchase in the
future to make our products or offer our services may not perform as planned or designed. Such failures could significantly extend the
time required to make batches of products for sale. As such, our reputation could suffer, thereby impacting future sales and revenues.

Further, given that we are engaged in a manufacturing
process, it is likely that equipment will break down or wear out, including after the lapse of a warranty period related to such equipment,
which could require us to expend unanticipated resources to repair or replace such equipment, thereby delaying, reducing or otherwise
impacting our anticipated revenues.

Temperature issues in fermentation vessels, bacteria or other contamination could negatively affect the fermentation process for our products.

Our products require proper fermentation of grains
or fruits. Temperature issues in fermentation vessels could negatively affect the fermentation process, as could bacteria or other contamination.
As such, faulty fermentation or contamination could force us to discard batches of fermenting product before it can be distilled. This