Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 36

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 36
---
 and results of operations from any future shutdowns is dependent on the length of time in which society, consumers, the supply
chain and markets return to pre-shutdown “normal” levels of operations, if they do at all, and whether we qualify for “essential
business” designation in the states in which we operate. The response to any future shutdowns may adversely impact our business,
financial condition, and results of operations in one or more ways not identified to date.

Our current working capital deficiency, incurrence of significant losses and required additional funding to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern. Furthermore, our independent registered public accounting firm has included an explanatory paragraph relating to our ability to continue as a going concern in its report on our audited consolidated financial statements included in this prospectus.

The report from our independent registered public
accounting firm on our financial statements for the years ended December 31, 2023 and 2022 includes an explanatory paragraph
stating that our working capital deficiency, incurrence of significant losses and need to raise additional funds to meet our obligations
and sustain our operations raise substantial doubt about our ability to continue as a going concern. We expect to continue to incur substantial
losses and negative cash flow from operations for the foreseeable future. Our financial statements included in this prospectus have been
prepared assuming that we will continue as a going concern. If, following this offering, we are unable to obtain sufficient funding to
support our growth plans, our business, prospects, financial condition and results of operations could be materially and adversely affected,
and we may be unable to continue as a going concern. If we are unable to continue as a going concern, we may have to liquidate our assets
and may receive less than the value at which those assets are carried on our audited consolidated financial statements, and it is likely
that investors will lose all or a part of their investment. Such action could also trigger a foreclosure by our senior secured lender,
which would have a material adverse effect on our business operations. After this offering, future reports from our independent registered
public accounting firm may also contain statements expressing doubt about our ability to continue as a going concern. If, following this
offering, we seek additional financing to fund our future business activities and there remains doubt about our ability to continue as
a going concern, investors or other financing sources may be unwilling to provide additional funding on commercially reasonable terms
or at all.

We may be subject to litigation