Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 181

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 181
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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 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