Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 79

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 79
---
 tokens on our balance sheet and, in turn, adversely affect the market price of our common stock. Moreover, the risks of engaging in a digital asset treasury strategy are relatively novel and have created, and could continue to create, complications due to the lack of experience that third parties have with companies engaging in such a strategy, such as increased costs of director and officer liability insurance, cybercrime insurance or the potential inability to obtain such coverage on acceptable terms in the future. The growth of the digital assets industry in general, and the use and acceptance of $IP tokens in particular, may also impact the price of $IP tokens and is subject to a high degree of uncertainty. The pace of worldwide growth in the adoption and use of $IP tokens may depend, for instance, on public familiarity with digital assets, ease of buying, accessing or gaining exposure to $IP tokens, institutional demand for $IP tokens as an investment asset, the participation of traditional financial institutions in the digital assets industry, consumer demand for $IP tokens as a means of payment, and the availability and popularity of alternatives to $IP tokens. Even if growth in the adoption of $IP tokens occurs in the near or medium -term, there is no assurance that the usage of $IP tokens will continue to grow over the long -term. Because $IP tokens have no physical existence beyond the record of transactions on the $IP tokens blockchain, a variety of technical factors related to the $IP tokens blockchain could also impact the price of $IP tokens. For example, malicious attacks by miners, inadequate mining fees to incentivize validating of $IP tokens transactions, 44 hard “forks” of the $IP tokens blockchain into multiple blockchains, and advances in digital computing, algebraic geometry, and quantum computing could undercut the integrity of the $IP tokens blockchain and negatively affect the price of $IP tokens. Similarly, the open -sourcenature of the $IP tokens blockchain means the contributors and developers of the $IP tokens blockchain are generally not directly compensated for their contributions in maintaining and developing the blockchain, and any failure to properly monitor and upgrade the $IP tokens blockchain could adversely affect the $IP tokens blockchain and negatively affect the price of $IP tokens. The veracity or accuracy of third -partyvalidators of the $IP token blockchain and its related transactions could come into question, thereby creating doubt in the market about the overall security of the data on the blockchain. The liquidity of $IP tokens may also be reduced and damage to the public perception of $IP tokens may occur,