Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 166

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 166
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 18.3 million active-duty
military and retirees in the U.S., including National Guard, Air National Guard and reservists in each branch of the military. Assuming
1.5 dependents per person (a dependent is defined by the military as a spouse, child under 21 unmarried or under 23 if a student, parent
or custodian dependent), the total population of active military, retired military and dependent affiliated persons is 45.75 million
people. There are another 660,000 active-duty civilian law enforcement officers, 1 million career and volunteer firefighters, more
than 5 million registered nurses and more than 1 million certified EMTs, plus millions of retirees and affiliated family members. We believe
the new Salute Series line will continue to garner a growing following given the specialty packaging and non-profit charitable
partnerships we are forming to support the launch and sale of the line.

In 2015, we also launched our Dual Barrel
series of bourbon and rye whiskey, which through the end of 2022 was sold nationwide primarily through Total Wine and More under their
Spirits Direct program. At the end of 2022, we withdrew that brand out of the Total Wine exclusive program so we can sell it across more
states and across more retailers to achieve higher volume and growth.

On February 21, 2024, we acquired Thinking Tree
Spirits, a small craft spirits producer and retailer located in Eugene, Oregon. In integrating Thinking Tree Spirits into our existing
operations, we plan to continue to produce the best-performing products in its portfolio while working to expand its wholesale reach.
We also plan to combine the Thinking Tree Spirits production facilities and tasting rooms with our production facilities and retail tasting
rooms in Eugene to create a larger consumer experience while driving more high-margin revenue activity. We believe that with our broader
sales reach and our more efficient production capabilities, we can generate revenue from this acquisition that exceed the annual revenues
that we were generating from the products that were produced under our low-margin, third-party production contract we terminated on January
31, 2024. We believe the third-party production contract we terminated was not capable of increasing in value for us, was limiting the
amount of profit we could generate from the products produced and created potential risk exposure from the number of employees involved
in the operation. We believe the Thinking Tree Spirits acquisition will increase growth in the brands we continue to produce and sell,
which could increase the value of those brands based