Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 180

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 180
---
 to accept cryptocurrency as a payment form for our craft spirits products and developed a cash management and treasury strategy that included holding digital currency assets directly on our balance sheet. In August 2025, we modified and updated our cryptocurrency treasury reserve policy to focus our growing cryptocurrency efforts on the native cryptocurrency of the Story Network, a decentralized peer -to-peernetwork of computers that operate on cryptographic protocols that allows network participants to exchange tokens of value, called $IP Tokens, that are created, recorded and transmitted on a public transaction ledger known as the Story Network that is intended to be optimized for the registration, licensing and enforcement of intellectual property (“IP”) rights. In connection with the adoption of our modified and updated cryptocurrency treasury reserve policy, we established as a new business segment a new validator business in which we will stake the majority of the $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 $