Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 7

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 7
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 node on the Story Network, which is used to stake our own $IP tokens. Third parties can also delegate $IP tokens to our validator node. In a proof -of-stakenetwork, such as the Story Network, validators earn incremental tokens from their efforts in securing the network and validating transactions, and typically earn commissions from third parties who elect to delegate their tokens to validator operators. Any incremental $IP tokens we earn in our validator operations will be treated as revenue for us under U.S. generally accepted accounting principles (“GAAP”) and will provide us an additional source of liquidity. •We plan to strategically and opportunistically engage in capital markets issuances, which may include the issuance of equity, convertible debt or other securities — where we may raise capital in an accretive fashion for the benefit of our stockholders to purchase and hold additional $IP tokens. •We expect to stake the majority of the $IP tokens in our treasury to earn a staking yield and turn our treasury into a productive asset. At October 13, 2025, we were staking approximately 81.8% of the $IP tokens in our treasury, and, unless we need to sell $IP tokens to cover operating expenses, we generally intend to maintain a similar percentage of staked $IP tokens going forward. We do not currently hedge our $IP tokens and do not have plans to hedge our $IP tokens or otherwise to 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 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