Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 180

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 180
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IP Tokens in our treasury to earn a staking yield and turn our treasury into a productive asset. As part of our new digital asset strategy, in September 2025, we established a new validator business to allow us to derive yield and revenue from our large $IP Token holdings. A cryptocurrency validator is like a digital “notary” or “referee” in a blockchain network. Its job is to check that transactions on the network are real and follow the network rules. Validators also are randomly selected to propose a new block of transactions to be added to the blockchain. When a participant attempts a transaction, that participant is required to pay a minimum “gas” fee. A participant can opt to pay an additional fee to ensure that its transaction is added to the blockchain more quickly. These fees are denominated in the same cryptocurrency that is evidenced by the blockchain. In the case of the Story Network, these fees are denominated in $IP Tokens. The validator chosen to propose a block will (when that block is successfully confirmed by the other validator nodes) receive the gas fees for all transactions in the block (known as “execution layer rewards”). In addition, the Story Network automatically issues $IP Tokens as rewards to validators who successfully propose a block. We have elected to continue operating our own validator services rather than to “delegate” our $IP Tokens to third party validation service providers. As a result of the recent expansion of our cryptocurrency treasury reserve policy and our decision to establish a new validator business, we now report our business in two segments: •IP Management Infrastructure: this segment executes and manages our treasury policy, operates our validators and operates infrastructure to allow IP owners to manage, track and monetize their IP through the $IP Token and the Story ecosystem; and •Craft Spirits: this segment executes and manages our craft distillery business, including producing, marketing and selling our lines of award -winningcraft spirits and the development of our Tribal Beverage Network. Our Digital Asset Treasury Segment Our Cryptocurrency Treasury Strategy As discussed above, in August 2025, we modified and updated our cryptocurrency treasury reserve policy to focus our growing cryptocurrency efforts on the Story Network, a decentralized layer 1 blockchain that allows network participants to register, license and enforce IP assets, using the native utility token of the Story Network, the $IP Token. This was a shift from our prior treasury reserve policy when we held excess cash primarily in FDIC -insuredinterest -bearingaccounts. The impetus to adopt this strategy resulted from our desire to obtain the highest yield on excess