Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 9

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 9
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| ● | We also sell through e-commerce and engage in other subscription-based                                                                        
 program activities to target customers to generate recurring revenue and customer loyalty. In March 2023, we contracted with a third-party    
 e-commerce platform to sell online to consumers in 34 states via its three-tier compliant system. In March 2024, we ended that relationship   
 and began migrating to LiquidRails, a third-party, three-tier compliant platform that relies on delivery to consumers via licensed retailers. 
 This platform expands our DtC outreach to 45 states and the District of Columbia and eliminates our shipping costs to the consumer, which     
 will help us to both increase our net margin and expand our sales opportunities. Prior to March 2023, we shipped directly to consumers        
 in only nine states. We also recently added our offerings from our Salute Series line onto the Seelbach’s DtC platform,                       
 a third-party, three-tier compliant DtC platform that is well known to whiskey enthusiasts around the country, which expanded our reach       
 to a new whiskey-focused DtC audience. This DtC sales method allows us to collect high-margin sales and consumer data to drive future         
 sales and to support the growth of our traditional spirits through the three-tier wholesale system. The future ability to accept bitcoin      
 as a form of payment, upon the future adoption of a final Bitcoin Treasury Policy, for select online sales further differentiates us          
 in the space among our competitors and opens up our products to a broader market of consumers and clientele.                                  |

| ● | In our Cask Club® program, consumers join                                                                                                  
 as members and work with our distilling team to develop their own 10-liter barrel batches, which are custom aged, flavored, bottled,       
 proofed, and labeled in our retail locations. Over the last ten years, we have demonstrated that this program creates repeat customer      
 foot traffic in our tasting rooms and encourages members to bring friends and family to the locations to sample products, enjoy cocktails, 
 and purchase products of their own. It also serves as an innovation laboratory that provides us with an opportunity to develop and test    
 new products and concepts with the goal of bringing the strongest performers to the market.                                                |

| ● | In our Spirits Club®, a DtC subscription                                                                                               
 service, we offer members the opportunity to purchase three or four selections of spirits per year, which are automatically shipped to 
 their homes or are available for pick up in our tasting rooms.                                                                         |

| ● | Wholesale. We