Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 330

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 330
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 Carryforwards               |     |              |     164,796 |   |     |      |     91,614 |   |
| Fixed Asset Basis                  |     |              |   1,016,323 |   |     |      |    517,435 |   |
| Other Carryforwards                |     |              |      55,583 |   |     |      |     16,616 |   |
| Allowance for Bad Debts            |     |              |           — |   |     |      |     16,969 |   |
| Total Deferred Tax Assets          |     |              |  13,661,412 |   |     |      | 10,771,642 |   |
| Less: Valuation Allowance          |     |              | (10,309,361 | ) |     |      | (7,429,810 | ) |
| Deferred Tax Liabilities           |     |              |             |   |     |      |            |   |
| Investment in Flavored Bourbon LLC |     |              |  (2,511,373 | ) |     |      | (2,472,700 | ) |
| Right-of-Use Assets                |     |              |    (840,677 | ) |     |      |   (869,132 | ) |
| Total Deferred Tax Liabilities     |     |              |  (3,352,050 | ) |     |      | (3,341,831 | ) |
| Net Deferred Tax Assets            |     | $            |           — |   |     | $    |          — |   |

ASC 740 requires that the tax benefit of net operating
losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization
is “more likely than not.” Realization of the future tax benefits is dependent on the Company’s ability to generate
sufficient taxable income within the carryforward period. Because of the Company’s recent history of operating losses, management
believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be
realized and, accordingly, has provided a valuation allowance. The change in the valuation allowance for the period ended December 31,
2023 was an increase of $ and change in the valuation allowance for the period ended December 31, 2022 was an increase of $.

F-70 Heritage