Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 73

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 73
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 products that they consider inferior. This could
cause them to refrain from purchasing our brands in the future and in turn could impair our brand equity and adversely affect our sales
and operations.

We could be faced with risks associated with cyberattacks by non-state actors or countries since the Russian invasion of Ukraine and the terrorist attacks by Hamas on Israel, recent attacks by Iran, and the resulting responses by Israel.

Increased IT security threats and more sophisticated
cybercrimes and cyberattacks, including computer viruses and other malicious codes, ransomware, unauthorized access attempts, denial of
service attacks, phishing, social engineering, hacking and other types of attacks pose a potential risk to the security of our IT systems,
networks and services, as well as the confidentiality, availability and integrity of our data, and we have in the past, and may in the
future, experience cyberattacks and other unauthorized access attempts to our IT systems. These attempts could increase as state and non-state
actors look to disrupt companies in the U.S. Specifically as it relates to potential attacks from Russia, Hamas, Iran or aligned groups,
we cannot choose which countries, non-state actors or private groups to defend against. Our focus is on maintaining the integrity of our
systems regardless of the source of the threat.

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From a physical threat perspective, we do not have,
and do not plan to have, employees in Ukraine or Israel nor in regions in their vicinity. Likewise, we do not currently, nor do we plan
to, source materials or inputs from, or make investments in, those regions. To the extent there may be future sourcing, hiring or investment
decisions in or near those regions, our board of directors would need to evaluate the risks and approve such action given the heightened
risks associated with those regions currently. Likewise, from an IT or cybersecurity threat perspective, our board will need to receive
regular reports from our IT team, including an assessment of attempted attacks, new methods of attack and defense, and updates regarding
the state-of-the-art techniques provided by our vendors to help fend off such attacks. In addition, we anticipate that if we are to maintain
or secure insurance coverage to compensate us for losses from any such attacks, that coverage and the steps required to ensure the coverage
stays in place will be overseen by at least one committee of our board in the normal course of business.

The techniques used to obtain unauthorized system
access are constantly changing and often are not recognized until launched against a target