Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 31

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 31
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, if obtained, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, which could increase our expenses and require that our assets secure such debt. Moreover, any debt we incur must be repaid regardless of our operating results. Our future capital needs are uncertain, and we may need to raise additional funds to support those needs. We believe our existing cash reserves and the cash generated from our current operations will enable us to fund our operations through at least December 31, 2025. However, we may need to seek significant future financing, namely to:

| ● | develop or acquire additional brands or products; |

| ● | expand our sales and marketing efforts to further commercialize 
 our products and TBN-related services;                          |

| ● | hire additional personnel; |

| ● | add operational, financial and management information systems; |

| ● | pay increased expenses as a result of operating as a public 
 company; and                                                |

| ● | expand our research and development efforts to expand and improve 
 our product offerings and to successfully launch new products;    |

Our future funding requirements will depend on many factors, including:

| ● | market acceptance of our products and services; |

| ● | the cost and timing of establishing additional sales, marketing 
 and distribution capabilities;                                  |

| ● | our ability to expand the TBN and to generate royalty revenues 
 therefrom;                                                     |

| ● | the cost of our research and development activities; |

| ● | the success of our existing distribution and marketing arrangements      
 and our ability to enter into additional arrangements in the future; and |

| ● | how competing products and market developments in our industry                
 impact our position in the market and how consumers view us and our products. |

There can be no assurance that we will be able to obtain additional funds on acceptable terms, or at all. Our ability to obtain additional financing will be subject to market conditions, our operating performance and investor sentiment, among other factors. If we raise additional funds by issuing equity or equity-linked securities, including through the Equity Line of Credit, our stockholders may experience dilution. Future debt financing, if available, may involve covenants restricting our operations or our ability to incur additional debt. Any debt or equity financing may contain terms that are not favorable to us or our stockholders. If we do not have, or are not able to obtain, sufficient funds, we may have to delay development or commercialization of our products. We also may have