IP STRATEGY HOLDINGS, INC.

Listed Company

IPSTCIK 0001788230NasdaqNon-AcceleratedSmaller ReportingEmerging GrowthBeveragesDelawareFY ends Dec 31

Period

FY 2025

Revenue

$10.12M

Net Income

$-137.72M

Total Assets

$108.76M

Equity

$98.22M

Shares Out

10.28M

Op. Cash Flow

$-15.33M

Business

Heritage Distilling Holding Company, Inc. is a craft distiller producing, marketing and selling a diverse line of award-winning craft spirits. It offers whiskeys (including premium aged and single-barrel selections and the Salute Series), vodkas, gins, rums, flavored spirits and ready-to-drink canned cocktails. Its business is organized around direct-to-consumer channels (company-owned distilleries, tasting rooms, e-commerce and subscription clubs), wholesale distribution through major distributors, and the Tribal Beverage Network which licenses and supports tribally owned production and retail operations. It sells primarily in the Pacific Northwest and distributes nationally via wholesale, DtC shipping and tribal partnerships.

Summary from filing dated 2025-04-28

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31
Total Net Revenues	10	8	8
Total Cost of Revenue	5	6	—
Gross Profit	6	2	2
Sales and Marketing	5	6	6
General and Administrative	12	11	7
Change in Fair Value of Intangible Digital Assets	118	0	—
Restructure Costs	3	0	—
Total Operating Expenses	140	17	13
Operating Income / (Loss)	−134	−15	−11
Interest Expense	−2	−3	−3
Impairment (Loss) / Gain on Investment	−3	3	0
Gain on Extinguishment of Debt	2	0	—
Change in Fair Value of Convertible Notes	0	14	−23
Change in Fair Value of Warrant Liabilities	0	736,580	−240,159
Change in Fair Value of Contingency Liability	−62,424	0	—
Other Income / (Expense)	−390,816	−11,750	4,893
Total Other Income / (Expense)	−4	16	−26
Income / (Loss) Before Income Taxes	−138	719,608	−37
Income Taxes	8,490	−9,150	−7,000
Net Income / (Loss)	−138	710,458	−37
Net Income / (Loss) Per Share, Basic (in dollars per share)	−16.03	0.98	−96.45
Weighted Average Common Shares Outstanding, Basic (in shares)	9	64,066	381,543
Net Income / (Loss) Per Share, Diluted (in dollars per share)	−16.03	−39.46	−96.45
Weighted Average Common Shares Outstanding, Diluted (in shares)	9	353,887	381,543

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31
Cash	245,282	453,162	76,878	—
Accounts Receivable	347,763	638,890	721,932	—
Inventory	2	2	3	—
Other Current Assets	510,440	355,928	2	—
Total Current Assets	3	4	5	—
Property and Equipment, net of Accumulated Depreciation (Note 18)	1	5	6	—
Operating Lease Right-of-Use Assets, net (Note 18)	2	3	4	—
Investment in Flavored Bourbon LLC	11	14	11	—
Intangible Digital Assets (Notes 8 and 18)	92	0	—	—
Other Intangible Assets (Notes 10 and 18)	0	421,151	—	—
Goodwill (Note 10)	0	589,870	0	—
Other Long Term Assets	17,965	31,666	44,817	—
Total Long Term Assets	106	24	21	—
Total Assets	109	28	26	—
Accounts Payable	2	5	5	—
Accrued Payroll	2	950,974	1	—
Accrued Tax Liability	2	2	1	—
Other Current Liabilities	536,017	1	2	—
Operating Lease Liabilities, Current (Note 18)	730,935	1	1	—
Notes Payable, Current	2	4	14	—
Accrued Interest	138,692	202,367	1	—
Total Current Liabilities	9	14	63	—
Operating Lease Liabilities, net of Current Portion (Note 18)	1	3	3	—
Notes Payable, net of Current Portion	220,842	9	0	—
Accrued Interest, net of Current Portion	0	977,316	0	—
Other Long Term Liabilities	0	127,075	0	—
Total Long-Term Liabilities	2	13	7	—
Total Liabilities	11	27	70	—
Commitments and Contingencies (Note 13)	—	—	—	—
Common stock	962	26	67	—
Additional Paid-In-Capital	310	75	31	—
Accumulated Deficit	−212	−74	−75	—
Total Stockholders Equity / (Deficit)	98	791,767	−43	−7
Total Liabilities & Stockholders Equity / (Deficit)	109	28	26	—

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31
Depreciation and Amortization	1	1	—
Amortization of Operating Lease Right-of-Use Assets	422,792	508,156	—
Loss on Disposal of Property and Equipment	991,646	241,541	43,290
Non-cash Warrant Issued	0	8,828	0
Change in Fair Value of Contingency Liability	62,424	0	—
Non-Cash Interest Expense	140,082	346,436	—
Non-Cash Shares in Lieu of Compensation	125,000	0	—
Non-Cash Share-Based Compensation	4	5	18,594
Accounts Receivable	291,127	83,042	−227,218
Inventory	484,791	1	885,547
Other Current Assets	646,258	−115,741	61,230
Other Long Term Assets	13,701	13,151	76,270
Accounts Payable	−3	−672,348	1
Other Current Liabilities	−290,115	−1	2
Operating Lease Liabilities	−445,739	−587,891	−672,371
Other Long Term Liabilities	−1	0	—
Net Cash Provided by / (Used in) Operating Activities	−15	−11	−8
Purchase of Intangible Digital Assets	−21	0	—
Purchase of Property and Equipment	−74,754	−106,421	−26,512
Proceeds from Sales of Assets	118,941	0	—
Proceeds from Purchase of Thinking Tree Spirits	0	5,090	0
Net Cash Provided by / (Used in) Investing Activities	−17	−101,331	−24,112
Proceeds from PIPE Sale of Prepaid Warrants, net	30	0	—
Proceeds from Notes Payable (including Factoring Agreements)	0	694,914	250,000
Proceeds from Whiskey Notes (including proceeds from related party Whiskey Notes of $0 and $1,100,000 for the years ended December 31, 2025 and 2024, respectively)	0	4	3
Repayment of Notes Payable	−6	−2	−183,062
Proceeds from Initial Public Offering of Common Stock, net of Underwriting Commission	0	6	0
Expenses related to Initial Public Offering, recorded to Additional Paid-in-Capital, net against IPO Proceeds	0	−313,467	0
Proceeds from Private Placement of Common Warrants	0	1	0
Proceeds from Warrants Exercised	355	0	—
Proceeds from ELOC Sales of Common Stock	5	0	—
Common Stock Shares Repurchased	−2,000	−3,690	−11,340
Net Cash Provided by Financing Activities	32	12	8
Net Increase / (Decrease) in Cash	−207,880	376,284	−146,156
Interest Expense	4	2	2
Income Tax Expense	3,122	1,650	7,000
Purchase of $IP Tokens with USDC	59	0	—
Sale of Prepaid Warrants for $IP Tokens and USDC in PIPE Offering	188	0	—
Issued Warrants for Debt and Vendor Settlements	4	0	—
Warrant exercised to purchase stock	0	670,686	0
RSUs Vested	275	0	—
Right-of-Use Assets Obtained / (Released) in Exchange for Operating Lease Liabilities	2	152,821	—
Transaction Costs Associated with S-1 Filing in Accounts Payable and Other Current Liabilities	0	2	1
Deferred Transaction Costs Applied Against IPO Proceeds	0	2	0
Unpaid Property and Equipment Additions	0	204,366	194,366
Series A Preferred Stock and Warrants Issued in Exchange for Barrels and Inventory	0	1	0
Series A Preferred Stock and Warrants Issued in Exchange for Factoring Agreement Notes Payable Including Interest and Fees	0	719,919	0
Preferred Stock Issued in Exchange for Warrants	0	9	0
Exercise of Warrants to Purchase Common Stock	0	32	0
Prepaid Warrants Issued in Exchange for Common Stock	0	3	0

Filings

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