Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 98

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 98
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, the emergence or growth of these or other digital assets could cause the market price of $IP tokens to decrease, which could have a material adverse effect on our business, prospects, financial condition, and operating results. We may be subject to risks associated with the provision and use of validator services. In connection with our proposed activities regarding the Story Protocol (as defined below), we may stake our $IP tokens and operate a validator to secure the network, and we may also offer others the right to access that validator. In the past, the SEC has asserted that the offering of validator services to third parties constitutes an offer to the public of unregistered securities. While the SEC has recently released a statement stating that, in the views of its Division of Trading and Markets, it will not consider staking and the provision of validator services to constitute an offering of securities, this statement is not a rule, regulation, guidance, or statement of the SEC and does not alter applicable law. Concentration of stake or validator collusion could censor transactions, cause chain reorganizations, or enable double spends — potentially irreversibly impairing the value of $IP tokens. If we choose to operate our own validator or delegate or $IP tokens to another validator, we may suffer slashing or forfeiture of rewards due to downtime, misconfiguration, or malicious software, materially reducing the value of our treasury holdings. We are subject to accounting, financial reporting, and earnings volatility risks due to the highly-volatile nature of $IP tokens and digital assets in general . Under the Financial Account Standards Board’s Accounting Standards Update 202308 (the “ASU”), many crypto assets (including $IP tokens, if they meet the ASU’s scope criteria) must be measured at fair value with changes recognized in net income. Due to the highly volatile nature of $IP tokens and digital assets in general, this could result in material increases in volatility in our reported earnings. Additionally, our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our proposed holdings of $IP tokens. Complex valuation controls and benchmark dependence may lead to restatements or control deficiencies. Reliance on third -partyreference rates, principal market determinations or bespoke methodologies introduces risk if those benchmarks are disrupted, manipulated, or fail benchmark principles set by the International Organizational of Securities Commissions. Net asset value or fair value determinations of our $IP tokens could be challenged, leading to restatements or control deficiencies with respect to our financial statements. Fair value, complex custody arrangements,