Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 181

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 181
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 cash. Under this approach, our digital asset treasury policy now focuses primarily on holding $IP Tokens. Our approach involves applying a public -markettreasury model to an asset that we believe is earlier in its lifecycle with respect to both development and usage, as well as institutional adoption, compared to other, more established cryptocurrencies, such as Bitcoin or Solana. The Digital Assets Committee of our Board, which manages our treasury reserve policy, will focus efforts and attention on this digital asset strategy and a significant portion of our balance sheet 107 will be allocated to holding $IP Tokens in our digital asset treasury. At November25, 2025, 99% of our digital asset reserves consisted of $IP Tokens, with the remainder of such assets held in USDC. We do not intend to dedicate any of our treasury -allocatedcapital to other digital assets outside of those in the Story ecosystem. Our treasury strategy is intended to bring value to our stockholders in the following ways: •We operate a number of validator nodes on the Story Network, including new nodes established under our custody arrangement with Crypto.com in December 2025, that are used to stake our own $IP Tokens. In a proof -of-stakenetwork, such as the Story Network, validators earn incremental tokens from their efforts in securing the network and validating transactions. Third parties can also delegate $IP Tokens to our validator node on the Story Network for which we typically earn a 5% commission on the staking rewards earned by such third parties, which amount is subject to change in our discretion at any time and from time to time. At December9, 2025, third parties had delegated 2,387,391.98 $IP Tokens to our validator, none of which have yet been migrated to our new validator set up under our custody arrangement at Crypto.com. Any incremental $IP Tokens we earn in our validator operations will be treated as revenue for us under GAAP and will provide us an additional source of liquidity. •We plan to strategically and opportunistically engage in capital markets issuances, which may include the issuance of equity, convertible debt or other securities — where we may raise capital in an accretive fashion for the benefit of our stockholders to purchase and hold additional $IP Tokens. •We expect to stake the majority of the $IP Tokens in our treasury to earn a staking yield and turn our treasury into a productive asset. At November25, 2025, we were staking approximately 81.8% of the $IP Tokens in