Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 5

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 5
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Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial statements and related notes thereto contained in this prospectus, before making an investment decision. Unless the context requires otherwise, references in this prospectus to “we,” “us,” “our,” “our company,” or similar terminology refer to Heritage Distilling Holding Company, Inc. and its subsidiaries. Our Company Overview 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. Early in 2025, we determined to implement a procedure to accept cryptocurrency as a payment form for our craft spirits products and developed a cash management and treasury strategy that included holding digital currency assets directly on our balance sheet. In August 2025, we modified and updated our cryptocurrency treasury reserve policy to focus our growing cryptocurrency efforts on the native cryptocurrency of the Story Network, a decentralized peer -to-peernetwork of computers that operate on cryptographic protocols that allows network participants to exchange tokens of value, called $IP tokens, that are created, recorded and transmitted on a public transaction ledger known as the Story Network blockchain that is intended to be optimized for the registration, licensing and enforcement of intellectual property (“IP”) rights. In connection with the adoption of our modified and updated cryptocurrency treasury reserve policy, we established as a new business segment a new validator business in which we will stake the majority of the $IP tokens in our treasury to earn a staking yield and turn our treasury into a productive asset. 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 also are randomly selected to propose a new block of transactions to be added to the 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 the same cryptocurrency that is evidenced by the blockchain. In the case of the Story Network blockchain, these fees are denominated in $IP tokens. The