Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 182

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 182
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 our treasury. We anticipate that early in the first quarter of 2026, we will move a majority of our $IP Tokens to third -partycustodians that will allow us to continue our validator efforts and to stake our $IP Tokens under longer -termcontracts to increase yield. Unless we need to sell $IP Tokens to cover operating expenses, we generally intend to keep those $IP Tokens staked going forward. We do not currently hedge our $IP Tokens and do not have plans to hedge our $IP Tokens or otherwise engage in decentralized finance activities at this time, and any future hedging or decentralized finance activities would be subject to approval by the Digital Assets Committee of our Board and, if material in amount or scope, will be publicly disclosed. •In September 2025, the Digital Assets Committee of our Board approved our sale of covered call options using less than 2% of the total amount of $IP Tokens we own. We expect to sell call options that can be exercised if the price of the $IP Token in the market reaches a price that is 25% above the $IP Token price at the time the option is sold. In this way, we believe we earn yield while still owning the $IP Tokens underlying such options until such time as the price of the $IP Token in the open market reaches the call threshold. •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 a new product or service, or to cover ongoing expenses. 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 Cryptocurrency Treasury Reserve Policy On August 15, 2025, we adopted an amended treasury reserve policy that sets out our