Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 128

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 128
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 amount of $IP Tokens we own. We expect to sell call options that can be exercised if the price of the $IP Token in the market reaches a price that is 25% above the $IP Token price at the time the option is sold. In this way, we believe we earn yield while still owning the $IP Tokens underlying such options until such time as the price of the $IP Token in the open market reaches the call threshold. •We may strategically purchase additional $IP Tokens from time to time, including through over -the-countertransactions and strategic partnerships, which could provide gains for our stockholders. •We may sell our $IP Token holdings, whether on the open market, through block trades or in other negotiated transactions, for various reasons and at various times, which may include for the repurchase of shares of our common stock when our Board believes such repurchases will result in the creation of accretive value for our stockholders and at such times when it is legally permissible to do so. We may also sell unlocked $IP Tokens or $IP Tokens earned from our validating efforts in the market under certain market conditions to build cash reserves, to grow or launch new products or services, or to cover ongoing expenses. There can be no assurance, however, that the value of $IP Tokens will increase, and investors should carefully consider the risks associated with digital assets. See “ Risk Factors — Risks Related to Our Cryptocurrency Treasury Reserve Strategy and $IP Tokens” for additional information. Key Factors Affecting Our Operating Results Management believes that our performance and future success depend on many factors that present significant opportunities, but also pose challenges, including the following: Market Price of the $IP Token We use the fair value method of accounting to report our operating results in accordance with GAAP. We currently own approximately 53.2million $IP Tokens, some of which were acquired at a significant discount to the then market value, and which may be written down to a lower cost per token at any time that the market value of $IP Tokens is lower (impaired) from the previously -recordedcost. For each reporting period, our $IP Token treasury will be reflected at the market price of $IP Tokens and the aggregate change in the fair value of our treasury of $IP 73 Tokens will be reflected as a gain or loss in our consolidated statement of operations. For each reporting period, our consolidated statement of operations will reflect a net gain or loss commensurate with the respective change in market value of a $IP Token