Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 185

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 185
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 in two distinct chains with duplicative holdings on each such chain, we would analyze the distinct chains created by the fork to determine whether one chain would be more valuable than the other, and we may determine to sell the $IP Tokens from one chain in order to purchase additional $IP Tokens on the chain we feel will be more successful. In the event we receive tokens in an airdrop ( i.e., a distribution of digital assets other than $IP Tokens), we would evaluate whether such airdropped $IP Tokens were more likely to accrue value outside of our core $IP Tokens treasury. We cannot confirm how we would react to any particular fork or airdrop; however, we plan to disclose our decision regarding any fork or material airdrop periodically after such decisions are made. Our Staking Program Pursuant to our treasury strategy, in September 2025 we began using the vast majority of our $IP Tokens in our treasury reserve to generate a return through various opportunities, with the most significant portion being allocated to our staking program. We began our staking efforts of our $IP Tokens in late September 2025 after several weeks of incremental testing. Our validator operations were launched following Board -levelapproval of a comprehensive security and information security framework and were funded from our existing resources, with costs limited to AWS hosting and security monitoring, none of which are material to our financial position. The primary challenges associated with validator operations are maintaining uptime and ensuring resilience against protocol -levelslashing. We mitigate these risks through redundancy, continuous monitoring, and defense -in-depthsecurity controls. Most of the staked $IP Tokens we hold are currently staked to our own validator nodes on the Story Network. In early December 2025, we established a new validator under a custodian account held at Crypto.com, to which account we moved 1million $IP Tokens from our own wallet for testing on the new validator. In December 2025, we also established new custody arrangements with Bitgo.com and Kraken to give us flexibility and diversity for our future staking operations. We plan to move nearly all of our $IP Tokens to our custodied validators early in first quarter of 2026; however, we have not yet determined the amounts or percentages of our $IP Tokens that will be allocated to each custodial account. In doing so, we will then be able to stake our $IP Tokens under longer -termcontracts to increase yield. We plan to continue evaluating additional custody arrangements with new custodians as our staking program