Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 82

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 82
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 In the past, we have not timely filed and paid certain taxes, but no fines or penalties have been
assessed for such late filings to date. However, a governmental entity could attempt to institute fines and/or assess other penalties
for our past late tax filings and payments. Such an action could also include a suspension or termination of one or more of our permits
or licenses.

Our products could be subject to a voluntary or involuntary recall.

Our products could be subject to a voluntary or
involuntary recall for any number of reasons. In such an event, we may be forced to repurchase products we have already sold, cover other
costs associated with the product or the recall, cease the sale of product already in the sales pipeline, or destroy product still in
our control or that we are still processing. Any such product recalls could negatively impact our financial performance and impugn our
reputation with consumers.

Our agreements with partners may be perceived as de facto franchise relationships.

Our agreements with partners, including American
Indian Tribes or other licensees, allowing such partner to operate a Heritage-branded location could be interpreted by a state or federal
court or administrative body as being a de facto franchise relationship, in which case we may need to revise the terms of our licensing
arrangement with such partner, thereby altering our anticipated return and risk profile. If an agreement with a partner is determined
to be a de facto franchise relationship, we may be required to file franchise documents with state and the federal governments for approval
and we will be liable for fines or penalties for not pre-filing such franchise documents.

Direct to consumer shipping could become more regulated or be curtailed or terminated through government regulation or enforcement.

We currently use a three-tier compliant third-party
retailer that resells, ships and handles fulfillment for certain of our products directly to consumers in 45 states and the District of
Columbia. There are several risks associated with direct-to-consumer shipping, including that one or more states could decide such activities
do not comport with their specific laws or regulations. In addition, there is a risk the third-party fulfillment firm could be forced
to curtail or cease operations by virtue of a federal or state demand or reinterpretation of statute or rule, or that such firm could
exit the market on its own free will. In any of these cases, the loss of direct-to-consumer shipping would likely lead to fewer sales,
less revenue, and less profitability for our company, which could impact the value of