Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 273

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 273
---
, based on its technical merits. Interest and penalties related to uncertain tax positions are classified as income tax expense.

| F-42 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 11 — INCOME TAXES(cont.)

For the years ended December 31, 2024 and 2023, the Company’s income tax provision consisted of current state taxes of $ 9,150and $ 472, respectively. and federal and other $0 for both years.

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

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

|                                                        |     |                              2024 |         |    |     | 2023 |        |    |
|                                                        |     | 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                                |     |                                   |    1.65 | %  |     |      |   0.00 | %  |
| Permanent Items - Other                                |     |                                   |    3.85 | %  |     |      |  (0.13 | )% |
| Tax Credits                                            |     |                                   |   (3.78 | )% |     |      |   0.00 | %  |
| True-ups/