Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 127

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 127
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 to the blockchain more quickly. These fees are denominated in the same cryptocurrency that is evidenced by the blockchain. 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, 72 the blockchain automatically issues cryptocurrency as rewards to validators who successfully propose a block. While we currently operate our own Story Network validator services, in the future we may seek to “delegate” a portion of our $IP Tokens to third -partyvalidation service providers in exchange for a percentage of its validation fees. Our treasury strategy is intended to bring value to our stockholders in the following ways: •We intend to continue to operate our validator nodes on the Story Network, which are used to stake our own $IP Tokens. Third parties can also delegate $IP Tokens to our validator nodes. Any incremental $IP Tokens we earn in our validator operations will be treated as revenue for us under U.S. generally accepted accounting principles (“GAAP”) and will provide us an additional source of liquidity. •We plan to strategically and opportunistically engage in capital markets issuances, which may include the issuance of equity, convertible debt or other securities — where we may raise capital in an accretive fashion for the benefit of our stockholders to purchase and hold additional $IP Tokens. •We expect to stake the majority of the $IP Tokens in our treasury to earn a staking yield and turn our treasury into a productive asset. At November25, 2025, we were staking approximately 81.8% of the $IP Tokens in our treasury. We anticipate that early in the first quarter of 2026 we will move most of our $IP Tokens to third -partycustodians that will allow us to continue our validator efforts and to stake our $IP Tokens under longer -termcontracts. Unless we need to sell $IP Tokens to cover operating expenses, we generally intend to keep those $IP Tokens staked going forward. We do not currently hedge our $IP Tokens and do not have plans to hedge our $IP Tokens or otherwise to engage in decentralized finance activities at this time, and any future hedging or decentralized finance activities would be subject to approval by the Digital Assets Committee of our Board and, if material in amount or scope, will be publicly disclosed. •In September 2025, the Digital Assets Committee of our Board approved our sale of covered call options using less than 2% of the total