Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 24

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 24
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 and any resulting gain or loss to be recognized based on that final value. While we believe some amount of our NOLs will be available to use in the future, since the amount cannot yet be quantified, we have elected to fully reserve against the use of any such tax benefits in our financial statements for the nine months ended September30, 2025. Further, the net income and the resulting tax for the nine -monthperiod ended September30, 2025 was based on the fair value of $8.54 per $IP Token as of September30, 2025. Given the lowest closing price of the $IP Token of $1.48 subsequent to September30, 2025 (at the close of December22, 2025), the currently reported gain on change in fair value of intangible digital assets reported for the nine -monthperiod ended September30, 2025 could be offset by losses on change in fair value of intangible digital assets in the quarter ended December31, 2025. We would then anticipate reducing or eliminating any tax liability in the aggregate for the full year ending December31, 2025. There is a risk that we are not able to use all of our NOLs to offset income and other tax liabilities resulting from our revenue and change in fair value of our intangible digital assets. There is also a risk that because of the volatility of the $IP Token between reporting quarters, that large swings in the closing price of the $IP Token at the end of each reporting period could result in large increases or decreases in the change in fair value of those intangible digital assets. As a result, our estimate of a full year’s net income and resulting tax liability at any one point in time during the tax year is subject to dramatic changes from reporting period to reporting period and can only be known after the full year has ended. There could be large swings (both positive and negative) between each quarter’s net income or loss due to the change in fair value of the intangible digital asset, and such swings (both positive and negative) may not be fully representative of the actual full year’s net income, nor the amount of tax due for the year. 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