Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 23

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 23
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 $IP Tokens, in which the revenue is paid, fluctuates. We expect to continue to expend substantial financial and other resources on, among other things: •sales and marketing, including expanding our marketing programs, particularly for larger customers and for expanding our Tribal Beverage Network efforts; •the development of new formulations and enhancements of our existing brands; •general administration, including legal, accounting and other expenses related to being a public company; •Increases in insurance premiums related to our digital asset treasury holdings and strategy; and •Specific spirits -relatedwind -downexpenses, equipment or tenant improvement write downs, or adjustments for retail locations we plan to close or equipment we plan to take offline as we reduce our real estate footprint, move to third -partyproduction and work to get asset -light. These expenditures may not result in additional revenue or the growth of our business. Accordingly, we may not be able to generate sufficient revenue to offset our expected cost increases and achieve and sustain profitability. If we fail to achieve and sustain profitability, the market price of our common stock could decline. 11 Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our $IP Token holdings. Moreover, our quarterly operating results, revenues, and expenses may fluctuate significantly, which could have an adverse effect on the market price of our common stock. Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future from holding or selling significant amounts of $IP Tokens. The price of $IP Tokens is subject to dramatic price fluctuations and is highly volatile. For example, from February 13, 2025 (the date $IP Tokens first became available on digital asset trading platforms) through November25, 2025, the price of $IP Tokens, as reported by Coinbase.com, ranged from a low of $1.246 to a high of $14.933. We determine the fair value of our $IP Tokens based on prices reported by Coinbase.com, and pursuant to Accounting Standards Update No. 2023 -08(“ASU 2023 -08”), we are required to measure our $IP Token holdings at fair value in our statement of financial position and to recognize gains and losses from changes in the fair value of our $IP Tokens in net income each reporting period, which may create significant volatility in our reported earnings and decrease the carrying value of our digital assets, which in turn could have a material adverse effect on the market price of our common stock. Conversely, any sale of