Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 124

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 124
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 across retail chains. Third, we are focused on expanded growth of our collaboration with Native American tribes through the TBN model we created. In concert with tribal partners, this sales channel includes Heritage -brandedmicro production hubs, Heritage -brandedstores and tasting rooms and the sale of our products and new tribally -brandedproducts. In the typical TBN collaboration, the tribes own these businesses and we receive a royalty on gross sales through licenses we grant to use our brands, products, recipes, programs, IP, new product development, on -goingcompliance support and the other support we provide. The TBN is expected to form a network of regional locations that will support product trials and sampling, and will generate sales of finished spirits for retail and wholesale distribution. We expect that, as the brands grow and the TBN footprint expands, there will be an important synergy with increased adoption and growth through our wholesale channels in the regions where the TBN locations are driving trial and awareness. Similarly, as demand for our products grows through our wholesale channels, there should be a positive effect on the demand for the products produced by our tribal partners. On October23, 2025, in response to coming lease increases, recently -enactedstate tax increases on small businesses and pending wage increases, we announced that we would close our five owned and operated tasting rooms in Washington and Oregon effective December31, 2025, along with the transition of production to third -partycontract producers beginning in the first quarter of 2026. These actions, along with a significant reduction in headcount and overhead, are expected to result in significant reductions in net expenses with a resulting positive impact on our operating results. The elimination of in -houseproduction and the eventual termination of leases associated with operations is also expected to greatly reduce our unabsorbed overhead expense for every case of our product sold, thereby greatly improving margins. We will continue to sell spirits through distributors and direct to consumers online, and, through our TBN sales channel, will continue to work with Native American tribes to license the Heritage Distilling Company brand and our products for production and sale by tribes in HDC -brandedtasting rooms in or near their casino properties. Our Crypto and Related Business. In August 2025, we determined to focus our growing cryptocurrency efforts on the native cryptocurrency of the Story Network referred to as $IP Tokens. As part of this business segment, we established a new validator business related to $IP Tokens, staking 43.5million of the 53.