Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 75

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 75
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 from local or known domestic suppliers, management believes the impact of the Ukraine war has not been significant based
on our history and relationship with the existing farmers and growers. The other potential conflict we monitor is the threatening military
activity between China and Taiwan. Historically we have sourced our glass bottles from suppliers in China and we have recently migrated
this production to Taiwan. Although we now have what we consider an adequate supply of our glass bottles at the current utilization rate,
considering the potential disruption in Taiwan, we have started to evaluate new producers who 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, which could impact prices for fuel, transportation, freight and other related items, impacting costs directly and
indirectly leading to more inflation.

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Risks Related to our Intellectual Property

It is difficult and costly to protect our proprietary rights.

Our commercial success will depend in part on obtaining
and maintaining trademark protection and trade secret protection of our products and brands, as well as successfully defending these trademarks
against third-party challenges. We will only be able to protect our intellectual property related to our trademarks and brands to the
extent that we have rights under valid and enforceable trademarks or trade secrets that cover our products and brands. Changes in either
the trademark laws or in interpretations of trademark laws in the U.S. and other countries may diminish the value of our intellectual
property. Accordingly, we cannot predict the breadth of claims that may be allowed or enforced in our issued trademarks or in third-party
patents. The degree of future protection for our proprietary rights is uncertain because legal means afford only limited protection and
may not adequately protect our rights or permit us to gain or keep our competitive advantage.

We may face intellectual property infringement claims that could be time-consuming and costly to defend, and could result in our loss of significant rights and the assessment of treble damages.

From time-to-time we may face intellectual property
infringement, misappropriation or invalidity/non-infringement claims from third parties. Some of these claims may lead to litigation.
The outcome of any such litigation can never be guaranteed, and an adverse outcome could affect us negatively. For example, were a third
party to succeed on an infringement claim against us, we may be required to pay substantial damages (including up to treble damages if
such infringement were found to be willful). In addition,