Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 167

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 167
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 from low margin activities towards our focus on higher margin products, we would expect to see both the GAAP Gross Margin and the Adjusted Gross Margin excluding unabsorbed overhead increase. It is important to note specifically that the Adjusted Gross Margin excluding unabsorbed overhead includes revenue from low margin barrel production contracts we had through early 2024 that we do not expect to be performing for the foreseeable future as we focus on higher margin activities. In an ideal scenario a producer would be at 100% utilization and producing high margin items exclusively. Knowing this, we are examining operations, assets and our existing real estate footprint to drive better utilization and reduce overhead with the goal of driving down unabsorbed overhead and decreasing unused asset capacity.

99

The following table presents a reconciliation of net income/(loss) to EBITDA and adjusted EBITDA for the nine months ended September 30, 2025 and 2024, and the years ended December 31, 2024 and 2023.

| EBITDA Analysis                                   |     | 2025 |   Nine Months Ended 
       September 30, 
 (rounded to $000’s) |   |     | 2024 |            |   |     | 2024 |         Years ended 
        December 31, 
 (rounded to $000’s) |   |     | 2023 |             |   |
|:--------------------------------------------------|:----|:-----|--------------------:|:--|:----|:-----|-----------:|:--|:----|:-----|--------------------:|:--|:----|:-----|------------:|:--|
| Net Income/(Loss)                                 |     | $    |         185,936,000 |   |     | $    |  5,426,000 |   |     | $    |             710,000 |   |     | $    | (36,798,000 | ) |
| Add (Deduct):                                     |     |      |                     |   |     |      |            |   |     |      |                     |   |     |      |             |   |
| Income Tax                                        |     |      |          49,430,000 |   |     |      |      9,000 |   |     |      |               9,000 |   |     |      |       7,000 |   |
| Interest Expense                                  |     |      |           1,616