Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 317

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 317
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 can produce glass bottles in other countries. Finally, most recently the attacks on Israel and the resulting and potentially escalating
tensions in the region could feed uncertainty in the oil markets, impacting prices for fuel, transportation, freight and other related
items, impacting costs directly and indirectly leading to more inflation.

The inflation rate could remain high in the foreseeable
future. This could put cost pressure on the Company faster than it can raise prices on its products. In such cases the Company could lose
money on products, or its margins or profits could decline. In other cases, consumers may choose to forgo making purchases that they do
not deem to be essential, thereby impacting the Company’s growth plans. Likewise, labor pressures could continue to increase as
employees become increasingly focused on their own standard of living, putting upward labor costs on the Company before the Company has
achieved some or all of its growth plans. Management continues to focus on cost containment and is monitoring the risks associated with
inflation and will continue to do so for the foreseeable future.

<div align='center'>F-49

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements</div>

NOTE 1 — DESCRIPTION OF OPERATIONS AND BASIS OF PRESENTATION (cont.)

Interest rates have been rising lately, and there
are no signs that rates will drop soon. If interest rates continue to rise or remain higher than recent history has experienced, there
is a risk it will cost more for the Company to conduct its business or to get access to credit. There is also a risk that consumers may
feel increased economic pressure and not be willing to spend on the Company’s goods or services. Management continues to focus on
interest rates and their impact on the business, the cost of borrowing and the potential impacts on its future capital-raising efforts.

The chance that continued inaction in Congress to
secure final passage of annual spending bills puts the Company at risk of a government shutdown, which could impact its ability to secure
certain federal permits through the TTB, including transfer in bond permits, and formula or label approvals. Likewise, tribal partners
the Company is working with to open HDC branded distilleries and tasting rooms will rely on securing their own TTB permits. Any government
shutdown could slow down progress on development, opening or operating those locations.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates— The presentation
of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates