Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 191

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 191
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 If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our share price may be more volatile. 112 BUSINESS We are a craft distillery producing, marketing and selling a diverse line of award -winningcraft spirits, including whiskeys, vodkas, gins, rums, and “ready -to -drink” canned cocktails. We recognize that taste and innovation are key criteria for consumer choices in spirits and innovate new products for trial in our company -owneddistilleries and tasting rooms. We have developed differentiated products that are responsive to consumer desires for rewarding and novel taste experiences. On August 15, 2025, we completed an offering of our pre -fundedwarrants that advanced our efforts to move into cryptocurrency and Artificial Intelligence (“AI”) in partnership with the Story Foundation and its proprietary $IP token. $IP tokens are a digital asset that is created and transmitted through the operations of the peer -to -peerStory Network, a decentralized network of computers that operate on cryptographic protocols. The Story Network allows network participants to exchange tokens of value, called $IP tokens, which are recorded on a public transaction ledger known as a blockchain. The Story blockchain is intended to be optimized for the registration, licensing, and enforcement of intellectual property (“IP”) rights. As part of this business segment, we intend to establish a new validator business. A cryptocurrency validator is like a digital “notary” or “referee” in a blockchain network. Its job is to check that transactions on the network are real and follow the network rules. Validators are randomly selected to propose a new block of transactions to be added to the Story blockchain. When a participant attempts a transaction, that participant is required to pay a minimum “gas” fee. A participant can opt to pay an additional fee to ensure that its transaction is added to the blockchain more quickly. These fees are denominated in $IP. The validator chosen to propose a block will (when that block is successfully confirmed by the other validator nodes) receive the gas fees for all transactions in the block (known as “execution layer rewards”). In addition, the Story blockchain automatically issues $IP as rewards to validators who successfully propose a block. We may choose to operate our own validator services or we may seek to “delegate” our $IP to third party validation service providers. Spirits Business We compete in the craft spirits segment, which is the most rapidly -growingsegment of the overall $288 billion spirits market.