Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 24

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 24
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 $IP Tokens at prices above our carrying value for such assets would create a gain for financial reporting purposes even if we would otherwise incur an economic or tax loss with respect to such transaction, which also may result in significant volatility in our reported earnings. Because we intend to purchase additional $IP Tokens in future periods and increase our overall holdings of $IP Tokens, we expect that the proportion of our total assets represented by our $IP Token holdings will increase in the future. As a result, volatility in our earnings may be significantly more than what we experienced in prior periods. For many reasons, including those described below, our operating results, revenues, and expenses may vary significantly in the future from quarter to quarter. These fluctuations could have an adverse effect on the market price of our listed securities. Our quarterly operating results may fluctuate, in part, as a result of: •fluctuations in the price of $IP Tokens, of which we have significant holdings and with respect to which we expect to continue to make significant future purchases, and potential fair value changes associated therewith; •any sales by us of our $IP Tokens at prices above or below their carrying value, which would result in our recording gains or losses upon sale of our $IP Tokens; •the incurrence of tax liabilities on future unrealized gains on our $IP Tokens pursuant to ASU 2023 -08; •regulatory, commercial, and technical developments related to $IP Tokens or the Story blockchain, or digital assets more generally; •the impact of war, terrorism, infectious diseases (such as COVID -19), natural disasters and other global events, and government responses to such events, on the global economy and the market for and price of $IP Tokens; •our profitability and expectations for future profitability; and •increases or decreases in our unrecognized tax benefits. We base our operating expense budgets on expected revenue trends and strategic objectives. Many of our expenses, such as office leases and certain personnel costs, are relatively fixed. We may be unable to adjust spending quickly enough to offset any unexpected shortfall in our cash flow. Accordingly, we may be required to take actions to pay expenses, such as selling $IP Tokens or using proceeds from equity or debt financings, some of which could cause significant variation in operating results in any quarter. 12 Based on the above factors, we believe quarter -to-quartercomparisons of our operating results are not a good indication of our future performance. It is possible that in one or more future quarters, our operating results may be below