Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 6

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 6
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 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 -counte rtransactions 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