Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 140

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 140
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 ● | Adjusted gross profit, EBITDA                                                                                                         
 and adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; |

| ● | Adjusted gross profit, EBITDA                                                                       
 and adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; |

| ● | Adjusted gross profit, EBITDA                                                                                                        
 and adjusted EBITDA exclude certain recurring, non-cash charges such as depreciation of property and equipment and, although this is 
 a non-cash charge, the assets being depreciated may have to be replaced in the future;                                               |

| ● | Adjusted gross profit, EBITDA                                 
 and adjusted EBITDA exclude income tax benefit (expense); and |

| ● | Other companies in our industry                                                                                          
 may calculate our non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. |

The following table presents a reconciliation
of GAAP gross profit to adjusted gross profit for the nine months ended September 30, 2024 and 2023, and for the years ended December 31,
2023 and 2022. Adjusted gross margin is the percentage obtained by dividing gross profit by our total net sales.

| Gross Profit Analysis                    |     | 2024 |   Nine Months Ended 
       September 30, 
 (rounded to $000’s) |   |     | 2023 |           |   |     | 2023 |         Years Ended 
        December 31, 
 (rounded to $000’s) |   |     | 2022 |           |   |
|:-----------------------------------------|:----|:-----|--------------------:|:--|:----|:-----|----------:|:--|:----|:-----|--------------------:|:--|:----|:-----|----------:|:--|
| GAAP Total Net Sales                     |     | $    |           5,310,000 |   |     | $    | 5,525,000 |   |     | $    |           7,971,000 |   |     | $    | 8,310,000 |   |
| GAAP Gross Profit                        |     | $    |           1,786,000 |   |     | $    | 1,391,000 |   |     | $    |           2,151,000 |   |     | $    |