Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 46

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 46
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 expand the interest of North American
Indian tribes in establishing distilleries on tribal lands, it is possible that the interest of tribes in the construction or operation
of distilleries will not develop as expected or will develop at a slower pace. To the extent we are unable to expand the TBN in a timely
manner or at all, our sales and results of operations could be adversely affected.

Our ability to maintain and expand our distribution
network and attract additional distributors, retailers and brokers, and to expand the TBN will depend on many factors, some of which are
outside our control. Some of these factors include:

| ● | the level of demand for our brands and products in a particular 
 distribution area;                                              |

| ● | our ability to price our products at levels competitive with 
 those of competing products; and                             |

| ● | our ability to deliver products in quantity and at the time 
 ordered by distributors, retailers and brokers.             |

We may not be able to successfully manage all or
any of these factors in any of our current or prospective geographic areas of distribution. Our inability to achieve success regarding
any of these factors in a geographic distribution area will have a material adverse effect on our relationships in that geographic area,
thus limiting our ability to maintain or expand our market, which will likely adversely affect our revenues and financial results.

Our TBN efforts may not be successful.

Our business plan includes licensing our products,
services and concepts to certain third parties, including tribal business entities or American Indian Tribes as part of the TBN. As
planned, we would receive royalties associated with revenues earned through non-exclusive limited licenses for the right to use, sell
and assign certain of our patents, trademarks, brands, recipes and other protected assets. However, these efforts may not be successful.
While the current plan does not envision us providing any capital to build out and operate these licensed locations, our involvement in
these efforts will require the time and efforts of our employees and executives, which may detract from their time spent building our
brand and value as a standalone entity. The risks associated with our TBN plan, which individually or in the aggregate, could harm our
overall brand, reputation, perception in the market and financial position, include:

| ● | Sovereign Immunity and Choice of Venue — Tribes                                                                                          
 enjoy sovereign immunity for certain activities that take place on trust land. Since it is envisioned that these partnerships will occur 
 on trust land, we intend to seek a waiver of sovereign immunity.