Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 189

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 189
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 above, in August 2025, we modified and updated our cryptocurrency treasury reserve policy to focus our growing cryptocurrency efforts on the Story Network, a decentralized layer 1 blockchain that allows network participants to register, license and enforce IP assets, using the native utility token of the Story Network, the $IP token. This was a shift from our prior treasury reserve policy when we held excess cash primarily in FDIC -insuredinterest -bearingaccounts. The impetus to adopt this strategy resulted from our desire to obtain the highest yield on excess cash. Under this approach, our digital asset treasury policy now focuses primarily on holding $IP tokens. Our approach involves applying a public -markettreasury model to an asset that we believe is earlier in its lifecycle with respect to both development and usage, as well as institutional adoption, compared to other, more established cryptocurrencies, such as Bitcoin or Solana. The Digital Assets Committee of our Board, which manages our treasury reserve policy, will focus efforts and attention on this digital asset strategy and a significant portion of our balance 112 sheet will be allocated to holding $IP tokens in our digital asset treasury. At October 13, 2025, 99% of our digital asset reserves consisted of $IP tokens, with the remainder of such assets held in USDC. We do not intend to dedicate any of our treasury -allocatedcapital to other digital assets outside of those in the Story ecosystem. Our treasury strategy is intended to bring value to our stockholders in the following ways: •We currently operate a validator node on the Story Network, which is used to stake our own $IP tokens. Third parties can also delegate $IP tokens to our validator node. In a proof -of-stakenetwork, such as the Story Network, validators earn incremental tokens from their efforts in securing the network and validating transactions, and typically earn commissions from third parties who elect to delegate their tokens to validator operators. Any incremental $IP tokens we earn in our validator operations will be treated as revenue for us under GAAP and will provide an additional source of revenues for us. •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 October 13,