Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 68

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 68
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 cryptocurrencies, which could create a number of risks for us and our stockholders. In the event we finalize and adopt a final formal Bitcoin Treasury Policy, and we start to accept, accumulate, acquire or use bitcoin or other cryptocurrencies (which for the purpose of this offering the term “cryptocurrency” is assumed to include Bitcoin, among any other traded cryptocurrency or digital asset covered by such policy), there are risks associated with the volatility, stability, price, utilization, adoption, recognition, regulation, taxation, storage, handling and security of transacting, holding or using such cryptocurrencies in our business which could impact our balance sheet, liquidity and profitability. Such risks include, but are not limited to:

| ● | accepting cryptocurrency as a form of payment for our goods or services, and then subsequently seeing the value of such cryptocurrencies  
 fall, which would have a negative impact on our effective net gross margin and ultimately our ability to reach or maintain profitability; |

| ● | having any cryptocurrencies we own and hold be subject to fraud, hacking or theft as a result of not being properly stored or handled, 
 or as a result of a breach of information that allows a third party to improperly access and transfer such cryptocurrencies out of our 
 possession, which could impact our total assets, balance sheet and liquidity;                                                          |

| ● | acquiring and holding such cryptocurrencies and then selling some or all of those holdings into the market for cash before an event      
 that increases the value of those cryptocurrencies, meaning we would have lost out on an increase in the value of that asset had we held 
 it longer;                                                                                                                               |

| ● | selling cryptocurrencies we own such that followers of cryptocurrencies who may have become, or could have become loyal customers           
 of ours, because we engage in the use of cryptocurrencies could view such sale as not being in line with their belief that cryptocurrency   
 should be used to replace fiat currencies. In such cases this could result in fewer customers, fewer purchases, less revenue and an overall 
 reduction in business relative to the trajectory we may have been on, which could impact our financial result or reputation negatively;     |

| ● | accepting cryptocurrencies as a form of payment for goods or services could be subject to transactions fees than are higher than regular 
 credit card processing or similar fees, which could impact our financial results, profitability and net income or loss;                  |

| ● | based on new accounting rules adopted by the Financials Services Accounting Board, the value of cryptocurrencies held by public companies    
 may be marked to market. In the event we hold any such cryptocurrencies in our