Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 22

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 22
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 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 $IP Tokens at prices above our carrying value for such assets would create a gain for financial reporting purposes even if we would otherwise incur an economic or tax loss with respect to such transaction, which also may result in significant volatility in our reported earnings. Because we intend to purchase additional $IP Tokens in future periods and increase our overall holdings of $IP Tokens, we expect that the proportion of our total assets represented by our $IP Token holdings will increase in the future. As a result, volatility in our earnings may be significantly more than what we experienced in prior periods. For many reasons, including those described below, our operating results, revenues, and expenses may vary significantly in the future from quarter to quarter. These fluctuations could have an adverse effect on the market price of our listed securities. Our quarterly operating results may fluctuate, in part, as a result of: •fluctuations in the price of $IP Tokens, of which we have significant holdings and with respect to which we expect to continue to make significant future purchases, and potential fair value changes associated therewith; •any sales by us of our $IP Tokens at prices above or below their carrying value, which would result in our recording gains or losses upon sale of our $IP Tokens; •the incurrence of tax liabilities on future unrealized gains on our $IP Tokens pursuant to ASU 2023 -08; •regulatory, commercial, and technical developments related to $IP Tokens or the Story blockchain, or digital assets more generally; •the impact of war, terrorism, infectious diseases (such as COVID -19), natural disasters and other global events, and government responses to such events, on the global economy and the market for and price of $IP Tokens; •our profitability and expectations for future profitability; and •increases or decreases in our unrecognized tax benefits