Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 80

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 80
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 license,
state liquor licenses or other licenses or permits. Any such suspension or losses could negatively impact our financial results.

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We are subject to various insurance and bonding requirements.

We are required by the TTB to secure and maintain
insurance for various aspects of our operations. We may not be able to secure all of the insurance our business requires or, once we obtain
the required insurance, such insurance could be cancelled or terminated. We may also only be able to secure insurance at rates that we
deem to be commercially unreasonable.

We are also required by the TTB to provide bonds
for the distilled spirits products we make, store, bottle and prepare for sale. Such bonds could be revoked, or the cost of bonding might
become materially more expensive than we currently anticipate. As production and storage grows, there is a chance we may not be able to
secure an increase in our bonding adequate to cover federal obligations, or our operations could exceed our bonded authority. This could
require us to halt our operations until such increased bonding is secured, if at all. Further, as a condition of obtaining a bond, a bonding
company could require that we set aside dedicated funds to backstop the bond. Such a requirement would hamper our ability to use funds
for revenue generating purposes, thereby changing our plans for growth. In any of these situations, we would be forced to limit or curtail
all or some of our operations, thereby negatively impacting our financial performance significantly.

We are subject to certain record-keeping requirements to which we may not properly adhere.

We are required to track the source of products
we make, produce and/or bottle, including raw ingredients used, mashing, fermentation, distillation, storage, aging, blending, bottling,
removal from bond and sales. Historically, we may not have accurately captured, or in the future may not accurately capture, all of such
data. Moreover, in the event of an audit, state or federal revenue officers may interpret our data differently than we do, which could
lead to a finding that we either underpaid or overpaid federal excise and state sales taxes.

As we open new locations, the staff at those locations
may not properly track and record all data. The failure to adequately track production could put some products at risk from a labeling
or valuation standpoint or cause the TTB to impound certain of our products from future sales. Failure to properly track and report the
required data could also result in