Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 442

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 442
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 carryovers, tax credits, and other deferred tax assets may be limited or lost if the cumulative changes in ownership exceeds 50% within any three-year period. The Company has not completed

F-98

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 11 — INCOME TAXES (cont.)

a formal Section 382/383 analysis under the Code regarding the limitation of net operating loss and tax credit carryforwards. If a change in ownership were to have occurred, the annual limitation may result in a reduction of available tax attributes in a given tax year.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Due to its operating loss carryforward, the U.S. federal statute of limitations remains open for 2019 and onward. The Company has no ongoing or recently closed income tax examinations. The Company recognizes tax benefits from an uncertain position only if it is more likely than not that the position is sustainable, based on its technical merits. Interest and penalties related to uncertain tax positions are classified as income tax expense.

For the years ended December 31, 2024 and 2023, the Company’s income tax provision consisted of current state taxes of $ and $, respectively. and federal and other $ for both years.

The effective tax rate of the Company’s provision (benefit) for income taxes differs from the federal statutory rate as follows:

|                                                        |     | For the Years Ended 
        December 31, |    |     |        |    |
|                                                        |     |                2024 |    |     |   2023 |    |
| Effective Tax Rate Reconciliation                      |     |                     |    |     |        |    |
| Statutory Rate                                         |     |               21.00 | %  |     |  21.00 | %  |
| State Taxes                                            |     |              (32.56 | )% |     |   0.72 | %  |
| Change in Fair Value of Warrants and Convertible Notes |     |             (430.87 | )% |     | (13.13 | )% |
| Change in Valuation Allowance                          |     |              453.62 | %  |     |  (7.83 | )% |
| Prior Year State Tax True-ups                          |     |              (10.52 | )% |     |   0.00 | %  |
| Officers Life Insurance                                |     |