Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 20

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 20
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 and investor sentiment. If we are unable to raise additional capital when required or on acceptable terms, we may have to significantly delay or scale back our operations or obtain funds by entering into agreements on unattractive terms, which would likely have a material adverse effect on our business, stock price and our business relationships with third parties, at least until additional funding is obtained. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives, including selling some or all of our aging barreled spirits inventory or equipment. The sale of such assets could impact our operations and our ability to produce products for sale and diminish future revenue opportunities. Any of these actions would likely result in our stockholders losing some or all of their investment in us.

| 12 |

We do not have any credit facilities as a source of future funds, and if we need additional financing, there can be no assurance that we will be able to raise sufficient additional capital on acceptable terms, or at all. We may seek additional capital through a combination of private and public equity offerings, debt financing and strategic collaborations. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders could be significantly diluted, and these newly-issued securities may have rights, preferences or privileges senior to those of existing stockholders. Debt financing, 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 we will need to raise additional capital in 2025 to cover our expenses and meet our growth objectives for the remainder of the year. Assuming we meet the applicable funding conditions in the ELOC Purchase Agreement, we have the ability to draw down on the equity line of credit (ELOC) we put in place in February 2025. However, we may need to seek such additional financing through the offering of other instruments or securities, namely to:

| ● | fund                                                                                                                      
 operations or fulfill previously existing commitments;                                                                    |
| ● | develop                                                                                                                   
 or acquire additional brands or products;                                                                                 |
| ● | expand                                                                                                                    
 our sales and marketing efforts to further commercialize our products and TBN-related services;                           |
| ● | hire                                                                                                                      
 additional