Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 22

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 22
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 results of operations and future growth prospects, as well as our ability to accomplish our strategic objectives. As a result, the trading price of our securities could decline, and you could lose all or part of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations and stock price. Risks Related to Our Financial Position and Capital Needs We have a history of losses and our profitability may be subject to large swings in the future due to changes in the value of the $IP Tokens we own based on their value in the market. We have a history of operating losses, including operating losses of $10,248,970, $6,604,653, $14,918,810, and $11,264,559 for the nine months ended September 30, 2025 and 2024 and the years ended December 31, 2024 and 2023, respectively, and have incurred net losses in each prior year since our inception other than in 2021, the year in which we sold a controlling interest in our B S B — B rown S ugar B ourbon (“ Flavored Bourbon”) brand. While we had an operating profit of $1,855,202 and net income of $196,263,893 for the three month period ended September30, 2025 due primarily to our recognition of crypto and other related revenues from our recently -createdvalidator operations and staking rewards) and as a result of the increase in the fair value of our $IP Token investment, for which we recognized a $245,841,410 gain on change in fair value of intangible digital assets, there can be no assurance that we will continue to produce sufficient revenue from our crypto and related operations and/or spirits operations or to recognize continued or consistent gains on our $IP Token treasury reserve to support our costs. We must continue to generate and sustain higher revenue levels (and/or lower cost levels) in future periods to remain profitable, and, even if we do, we may not be able to maintain or increase our profitability. While we are implementing structural changes at the beginning of 2026 in our spirits segment to reduce expenses and overhead, there can be no assurance that such changes will make our spirits segment profitable. In addition, we expect to continue to incur substantial gains and losses from changes in the fair value of our intangible digital assets for the foreseeable future. Our crypto and other related revenue will also be expected to fluctuate as the value of the