Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 63

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 63
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Any one or more of the above risks, if they materialize,
could result in lower sales, less revenue than anticipated, less profit than anticipated or a reduction in the value of our brands or
reputation or value, which could have a material adverse effect on our business or operating results.

From time to time, we may become subject to litigation specifically directed at the alcoholic beverage industry, as well as litigation arising in the ordinary course of business.

Companies operating in the alcoholic beverage industry
may, from time to time, be exposed to class action or other private or governmental litigation and claims relating to product liability,
alcohol marketing, advertising or distribution practices, alcohol abuse problems or other health consequences arising from the excessive
consumption of or other misuse of alcohol, including underage drinking. Various groups and governmental agencies have, from time to time,
publicly expressed concern over problems related to harmful use of alcohol, including drinking and driving, underage drinking and health
consequences from the use or misuse of alcohol, and efforts have been made attempting to tie the consumption of alcohol to certain diseases,
including various cancers. These campaigns could result in an increased risk of litigation against us and other companies in our industry.
Lawsuits have been brought against beverage alcohol companies alleging problems related to alcohol abuse, negative health consequences
from drinking, problems from alleged marketing or sales practices and underage drinking. While these lawsuits have been largely unsuccessful
in the past, others may succeed in the future.

From time to time, we may also be party to other
litigation in the ordinary course of our operations, including in connection with commercial disputes, enforcement or other regulatory
actions by tax, customs, competition, environmental, anti-corruption and other relevant regulatory authorities, or, following this
transaction, securities-related class action lawsuits, particularly following any significant decline in the price of our securities.
Any such litigation or other actions may be expensive to defend and result in damages, penalties or fines as well as reputational damage
to us and our spirits brands and may impact the ability of management to focus on other business matters. Furthermore, any adverse judgments
may result in an increase in future insurance premiums, and any judgments for which we are not fully insured may result in a significant
financial loss and may materially and adversely affect our business, results of operations and financial results.

We may not be able to maintain our production, co-branded or co-packed spirits products or win any such agreements in the future.

We have previously secured, and continue