Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 8

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 8
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 •We may strategically purchase additional $IP Tokens from time to time, including through over -the-countertransactions and strategic partnerships, which could provide gains for our stockholders. •We may sell our $IP Token holdings, whether on the open market, through block trades or in other negotiated transactions, for various reasons and at various times, which may include for the repurchase of shares of our common stock when our Board believes such repurchases will result in the creation of accretive value for our stockholders and at such times when it is legally permissible to do so. We may also sell unlocked $IP Tokens or $IP Tokens earned from our validating efforts in the market under certain market conditions to build cash reserves, to grow or launch new products or services, or to cover ongoing expenses. 2 There can be no assurance, however, that the value of $IP Tokens will increase, and investors should carefully consider the risks associated with digital assets. See “ Risk Factors — Risks Related to Our Cryptocurrency Treasury Reserve Strategy and $IP Tokens ” for additional information. Our Spirits Business We compete in the craft spirits segment, a growing segment of the overall $288 billion spirits market. According to the American Craft Spirits Association, a craft distillery is defined generally as a distillery that produces fewer than 750,000 gallons annually and holds an ownership interest of 51% or more of a distilled spirits plant that is licensed by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury. According to Emergen Research, the global craft spirits market was valued at $27.48 billion in 2024, was forecasted to reach $260.65 billion by 2034, and was estimated to grow at a compound annual growth rate (“CAGR”) of 28.4% by 2034. Out of the more than 2,600 craft producers in North America, we have been recognized with more awards for our products from the American Distilling Institute, the leading independent spirits association in the U.S., than any other North American craft distiller for a decade, plus numerous other Best of Class, Double Gold and Gold medals from multiple national and international spirits competitions. We are streamlining our craft spirits operations to focus on our most profitable products and services while reducing overhead expenses. Our areas of focus moving forward will include growing our online Direct-to-Consumer (DtC) sales, furthering our reach in key U.S. markets through traditional sales channels (wholesale, on-premises and traditional retail)