Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 130

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 130
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 expensive and premium products, we do not believe the imposition of tariffs on those items will have a material effect on our gross margin for those products. Continued Investment and Innovation The performance of our spirits business is dependent on our ability to continue to develop products that resonate with consumers. It is essential that we continually identify and respond to rapidly -evolvingconsumer trends, develop and introduce innovative new products, enhance our existing products, and generate consumer demand for our products. Management believes that investment in beverage product innovation will contribute to long -termrevenue growth, especially in the premium and ultra -premiumsegments. Development of our Cryptocurrency Validator Business In August 2025, we completed a private placement of pre -fundedwarrant in which we received 53.2million $IP tokens. In September 2025, we completed the testing of a validator to stake a large portion of those tokens to earn yield. By mid -September2025, we completed the testing and onboarding of the bulk of our $IP tokens onto the validator, from which we earn significant yield on a daily basis in the form of new $IP tokens awarded to us. We will report our earnings from our validator services quarterly, reporting the income in U.S. dollars, with the value of any $IP token rewards to be determined based on the market price of the $IP token as reported publicly on CoinMarketCap.comas of the time such rewards are earned. The amount of $IP tokens we earn, and the value per token, could have significant impact on our overall revenue, gross margins and net income on a quarterly and annual basis, and could add significantly to our overall value proposition as a company. Factors that impact the success of our validator efforts and the value we are attempting to create include, but are not limited to, the overall uptime of our validator, the reliability of third -partysystems we use to house and operate our validator efforts, the demand for validating services on the Story Network at any given time or over any given length of time, the number of other validators providing services to the Story Network, other network validators offering similar services at less cost to secure market share at our expense, the integrity and uptime of the Story Network and the demand or lack thereof for any layer 2 apps on the Story Network that drive demand for validator services, among others. The value of our validator efforts and the amount of income we might realize from those efforts are tied directly to the value of the $IP token in the market at any given time or over any given length