Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 184

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 184
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 activities in connection with our reserve strategy. However, $IP Tokens (including staked $IP Tokens) will at all times comprise at least 95% of our treasury reserves and we do not intend to dedicate any of our treasury -allocatedcapital to other digital assets other than USDC or others within the Story ecosystem. Furthermore, we view our $IP Token holdings as long -termholdings and expect to continue to accumulate $IP Tokens. We have not set any specific target for the amount of $IP Tokens we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional financings, capital -raisingor other activities to purchase additional $IP Tokens. Our $IP Token strategy is generally expected to involve, from time to time, subject to market conditions, (i) issuing equity, debt or other securities or engaging in other capital -raisingtransactions with the objective of using the net proceeds to purchase $IP Tokens, and (ii) acquiring $IP Tokens with our liquid assets that exceed our working capital requirements. In the event we raise additional capital, our intention is to deploy the vast majority of those proceeds to purchase $IP Tokens in the open market in order to further support our staking and validator activities, subject to any terms that may be negotiated as part of such capital raises. However, as of the date of this prospectus, we have no specific plans or agreements in place for any capital raising transaction or for the purchase of additional $IP Tokens in the open market or through negotiated transactions. Without the prior written approval of the Digital Assets Committee, we may not dispose of any $IP Tokens that we hold or otherwise own. We plan to sell $IP Tokens only as needed to meet operational cash flow requirements, and we expect such sales to come primarily from validator rewards rather than $IP Tokens received as proceeds from investments or those purchased on the open market. In addition, we do not currently plan to hedge our $IP Token holdings or use our $IP Tokens as collateral for loans, and we do not otherwise intend to engage in decentralized finance activities with our $IP Tokens at this time, as we expect over time to stake at least 95% of the $IP Tokens that we hold in connection with our validator business. Moreover, any future hedging or decentralized finance activities would be subject to approval by the Digital Assets Committee of our Board. 109 While we do not have a formal fork or airdrop policy, in the event of a “fork” of the blockchain underlying the Story Network resulting