Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 24

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 24
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 of $IP tokens, of which we have significant holdings and with respect to which we expect to continue to make significant future purchases, and potential fair value changes associated therewith; •any sales by us of our $IP tokens at prices above or below their carrying value, which would result in our recording gains or losses upon sale of our $IP tokens; •the incurrence of tax liabilities on future unrealized gains on our $IP tokens pursuant to ASU 2023 -08; •regulatory, commercial, and technical developments related to $IP tokens or the Story blockchain, or digital assets more generally; •the impact of war, terrorism, infectious diseases (such as COVID -19), natural disasters and other global events, and government responses to such events, on the global economy and the market for and price of $IP tokens; •our profitability and expectations for future profitability; and •increases or decreases in our unrecognized tax benefits. We base our operating expense budgets on expected revenue trends and strategic objectives. Many of our expenses, such as office leases and certain personnel costs, are relatively fixed. We may be unable to adjust spending quickly enough to offset any unexpected shortfall in our cash flow. Accordingly, we may be required to take actions to pay expenses, such as selling $IP tokens or using proceeds from equity or debt financings, some of which could cause significant variation in operating results in any quarter. Based on the above factors, we believe quarter -to-quartercomparisons of our operating results are not a good indication of our future performance. It is possible that in one or more future quarters, our operating results may be below the expectations of public market analysts and investors. In that event, the market price of our common stock may fall. Sustained or increasing inflation could adversely impact our operations and our financial condition. The inflation rate could remain high or increase in the foreseeable future. This could put cost pressure on our company faster than we can raise prices on our products. In such cases, we could lose money on products, or our margins or profits could decline. In other cases, consumers may choose to forgo making purchases that they do not deem to be essential, thereby impacting our growth plans. Likewise, labor pressures could continue to increase as employees become increasingly focused on their own standard of living, putting upward labor costs on our company before we have achieved some or all of our growth plans. Our management continues to focus on cost containment and is monitoring the risks associated with inflation and will continue to do so for the foreseeable future.