Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 250

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part II, Item 8
Chunk 250
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, respectively were to a related party).

NOTE 14 — BASIC AND DILUTED NET INCOME / (LOSS) PER SHARE

The Company computes basic net income / (loss) per share by dividing net income / (loss) for the period by the weighted-average number of common shares outstanding during the period. The Company computes diluted net income / (loss) per share by dividing net income / (loss) for the period by the weighted-average number of common shares outstanding during the period, plus the dilutive effect of the stock options, RSU awards and exercisable common stock warrants, as applicable pursuant to the treasury stock method, and the convertible notes, as applicable pursuant to the if-

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)NOTE 14 — BASIC AND DILUTED NET LOSS PER SHARE (cont.)

converted method. The following table sets forth the computation of basic and diluted net income / (loss) per share:For the Three Months Ended September 30,For the Nine Months EndedSeptember 30,2025202420252024Basic earnings per share of common stock:Numerator:Net Income / (Loss) for the period$196,263,893 $(3,432,931)$185,935,769 $5,426,409 Preferred stock dividend(198,607)(111,650)(1,297,350)(125,187)Net Income / (Loss) for the period – basic$196,065,286 $(3,544,581)$184,638,419 $5,301,222 Denominator:Weighted average number of shares of common stock - basic11,555,389 22,097 4,236,733 21,428 Net Income / (Loss) per share of common stock - basic$16.97 $(160.41)$43.58 $247.40 Diluted earnings per share of common stock:Numerator:Net Income / (Loss) for the period - basic$196,065,286 $(3,544,581)$184,638,419 $5,301,222 Change in fair value of dilutive convertible notes— — — (17,801,538)Change in fair value of dilutive warrants— — — (1,794,334)Net Income / (Loss) for the period - diluted$196,065,