Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 199

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 199
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 also retarget and resell to these customers, thereby generating more revenue. In May 2025, our board of directors adopted our cryptocurrency treasury reserve policy, which could lead to our eventual acceptance of cryptocurrencies as a form of payment from customers purchasing our products online and includes other matters dealing with our handling of cryptocurrencies. We believe this could expand the number of customers who may be interested in buying our products. Our DtC sales also support our second growth area, which entails growing our wholesale volume with our distributors through key national accounts both on -premisesand off -premises. By building brand recognition for key products in selected regions or states through DtC sales, we can better support the wholesale launch, marketing and product pull -throughof those products in partnership with wholesalers in those targeted states. While DtC sales result in singular high -marginsales, growing volume through wholesale distribution is the most efficient way to drive large -scalegrowth 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 will own these businesses and we will 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 production hubs that will support product trials and sampling, and will generate sales of finished, intermediate and bulk spirits depending on location, equipment and market. Importantly, because these premium spirits will be produced locally, we believe the TBN will promote the positioning of our brands as local and regional. 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 grow through our wholesale channels, there should be a positive effect on the demand for the products produced by our tribal partners. 117 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