Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 185

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 185
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 as needed to meet operational cash flow requirements, and we expect such sales to come primarily from validator rewards rather than $IP Tokens received as proceeds from investments or those purchased on the open market. In addition, we do not currently plan to hedge our $IP Token holdings or use our $IP Tokens as collateral for loans, and we do not otherwise intend to engage in decentralized finance activities with our $IP Tokens at this time, as we expect over time to stake at least 95% of the $IP Tokens that we hold in connection with our validator business. Moreover, any future hedging or decentralized finance activities would be subject to approval by the Digital Assets Committee of our Board. 109 While we do not have a formal fork or airdrop policy, in the event of a “fork” of the blockchain underlying the Story Network resulting in two distinct chains with duplicative holdings on each such chain, we would analyze the distinct chains created by the fork to determine whether one chain would be more valuable than the other, and we may determine to sell the $IP Tokens from one chain in order to purchase additional $IP Tokens on the chain we feel will be more successful. In the event we receive tokens in an airdrop ( i.e., a distribution of digital assets other than $IP Tokens), we would evaluate whether such airdropped $IP Tokens were more likely to accrue value outside of our core $IP Tokens treasury. We cannot confirm how we would react to any particular fork or airdrop; however, we plan to disclose our decision regarding any fork or material airdrop periodically after such decisions are made. Our Staking Program Pursuant to our treasury strategy, in September 2025 we began using the vast majority of our $IP Tokens in our treasury reserve to generate a return through various opportunities, with the most significant portion being allocated to our staking program. We began our staking efforts of our $IP Tokens in late September 2025 after several weeks of incremental testing. Our validator operations were launched following Board -levelapproval of a comprehensive security and information security framework and were funded from our existing resources, with costs limited to AWS hosting and security monitoring, none of which are material to our financial position. The primary challenges associated with validator operations are maintaining uptime and ensuring resilience against protocol -levelslashing. We mitigate these risks through redundancy, continuous monitoring, and defense -in -depthsecurity controls. Most of the staked $IP Tokens we hold are currently staked to our own validator nodes on the Story Network.