Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 20

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 20
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 in accordance with the rules of Nasdaq, such that the sales of such common stock to the Investor would not count toward such limit because they are “at market” under applicable stock exchange rules. Under the terms of the ELOC Purchase Agreement, the Investor may not purchase any ELOC Shares under the ELOC Purchase Agreement if such shares, when aggregated with all other shares then beneficially owned by the Investor and its affiliates (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule13d-3 promulgated thereunder) would result in the Investor beneficially owning shares in excess of 4.99% of the number of our shares outstanding immediately after giving effect to the issuance of shares issuable pursuant to a Put Notice (as defined below). The ELOC Purchase Agreement and the ELOC Registration Rights Agreement contain customary representations, warranties, conditions and indemnification obligations by each party. The representations, warranties and covenants contained in the ELOC Purchase Agreement were made only for purposes of the ELOC Purchase Agreement and as of specific dates, were solely for the benefit of the parties to such agreements and are subject to certain important limitations. For more detailed information about the Equity Line of Credit, see “The Equity Line of Credit” beginning on page 60. Risks Associated with Our Business Our ability to execute our business strategy is subject to numerous risks, as more fully described in the section captioned “Risk Factors” immediately following this prospectus summary. You should read these risks before you invest in our common stock. Risks associated with our business include, but are not limited to, the following:

| ● | Our operating history and evolving business make it difficult 
 to evaluate our prospects and risks.                          |

| ● | We have a history of losses, anticipate increasing our operating                     
 expenses in the future, and may not achieve or maintain profitability in the future. |

8

| ● | As we have incurred recurring operating losses and negative                                                                                 
 cash flows from operations since our inception, there is no assurance that we will be able to continue as a going concern absent additional 
 financing, which we may not be able to obtain on favorable terms, or at all.                                                                |

| ● | We could be materially adversely affected by health concerns                                                                           
 such as, or similar to, the COVID-19 pandemic, food-borne illnesses, and negative publicity regarding food quality, illness, injury or 
 other health concerns.                                                                                                                 |

| ● | We