Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 5

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 5
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, such as Bitcoin or Solana. The Digital Assets Committee of our Board, which manages our treasury reserve policy, will focus efforts and attention on this digital asset strategy and a significant portion of our balance sheet will be allocated to holding $IP Tokens in our digital asset treasury. At November 25, 2025, approximately 99% of our digital asset reserves consisted of $IP Tokens, with the remainder of such assets held in USDC. We do not intend to dedicate any of our treasury -allocated capital to other digital assets outside of those in the Story ecosystem. Our treasury strategy is intended to bring value to our stockholders in the following ways: •We currently operate a number of validator nodes on the Story Network, which are used to stake our own $IP Tokens. Third parties can also delegate $IP Tokens to our validator nodes. 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 November25, 2025, we were staking approximately 81.8% of the $IP Tokens in our treasury. We anticipate that early in the first quarter 2026 we will move most of our $IP Tokens to third -partycustodians that will allow us to continue our validator efforts and to stake our SIP Tokens under longer -termcontracts. Unless we need to sell $IP Tokens to cover operating expenses, we generally intend to keep those $IP Tokens staked 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