Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 70

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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IBLE DIGITAL ASSETS (cont.)

The following table represents a reconciliation of the fair values of the Company’s intangible digital assets: There were no Token Treasury Segment activities prior to the three months ended September 30, 2025:Fair ValueFor the Three Months Ended September 30, 2025For the Nine Months Ended September 30, 2025Intangible Digital Assets Held - June 30, 2025$— $— Additions (a)210,728,527 210,728,527 Dispositions(921,862)(921,862)Gains (b)246,033,779 246,033,779 Losses (b)(192,370)(192,370)Ending Balance - September 30, 2025$455,648,074 $455,648,074 (a) Additions represent initial consideration received as part of the PIPE offering, and purchases of, and staking rewards earned on, Crypto assets held for investment. (b) The Company measures gains and losses by each asset held. These include cumulative realized losses of $(146,685), unrealized losses of $(45,685), and unrealized gains of $245,841,410 for the three and nine months ended September 30, 2025

The Company also holds stablecoins, primarily USD Coin (USDC), which are designed to maintain a value pegged to the U.S. dollar. These holdings are presented within Other Current Assets on the Consolidated Balance Sheets. Because stablecoins do not meet the definition of cash or cash equivalents under ASC 305, Cash and Cash Equivalents, they are accounted for as financial instruments and measured at fair value under ASC 820, with changes recognized in net income. As of September 30, 2025, the Company held approximately $262,168 in stablecoins. The Company monitors liquidity, counterparty risk, and regulatory developments related to these holdings on an ongoing basis. 

NOTE 8 — STOCKHOLDERS’ EQUITY / (DEFICIT)

On May 11, 2024, the Board and stockholders of the Company approved, and on May 14, 2024 the Company effected, a .57-for-1 reverse stock split. All share and per share numbers included in these condensed consolidated financial statements as of and for all periods presented reflect the effect of that stock split unless otherwise noted. On September 18, 2025, the stockholders of the Company approved