Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 23

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 23
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 sufficient revenue to offset our expected cost increases and achieve and sustain profitability. If we fail to achieve and sustain profitability, the market price of our common stock could decline. Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our $IP token holdings. Moreover, our quarterly operating results, revenues, and expenses may fluctuate significantly, which could have an adverse effect on the market price of our common stock. Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future from holding or selling significant amounts of $IP tokens. The price of $IP tokens is subject to dramatic price fluctuations and is highly volatile. For example, from February 13, 2025 (the date $IP tokens first became available on digital asset trading platforms) through October 13, 2025, the price of $IP tokens, as reported by Coinbase.com, ranged from a low of $1.246 to a high of $14.933. We determine the fair value of our $IP tokens based on prices reported by Coinbase.com, and pursuant to Accounting Standards Update No. 2023 -08(“ASU 2023 -08”), we are required to measure our $IP token holdings at fair value in our statement of financial position, and to recognize gains and losses from changes in the fair value of our $IP 11 tokens in net income each reporting period, which may create significant volatility in our reported earnings and decrease the carrying value of our digital assets, which in turn could have a material adverse effect on the market price of our common stock. Conversely, any sale of $IP tokens at prices above our carrying value for such assets creates a gain for financial reporting purposes even if we would otherwise incur an economic or tax loss with respect to such transaction, which also may result in significant volatility in our reported earnings. Because we intend to purchase additional $IP tokens in future periods and increase our overall holdings of $IP tokens, we expect that the proportion of our total assets represented by our $IP token holdings will increase in the future. As a result, volatility in our earnings may be significantly more than what we experienced in prior periods. For many reasons, including those described below, our operating results, revenues, and expenses may vary significantly in the future from quarter to quarter. These fluctuations could have an adverse effect on the market price of our listed securities. Our quarterly operating results may fluctuate, in part, as a result of: •fluctuations in the price