Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 362

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 362
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NOTE 16 — BASIC AND DILUTED NET INCOME / (LOSS) PER SHARE(cont.)

Diluted earnings / (loss) per share reflect the potential dilution of securities that could share in the earnings of an entity. For the year ended December 31, 2024, the calculation of diluted earnings per share includes the dilutive effect of shares issued for the conversion of the convertible notes and related warrants and subtracts the related gains from changes in their respective fair values from net income. The following number of shares of common stock from the potential exercise or conversion of outstanding potentially dilutive securities were excluded from the computation of diluted net income / (loss) per share attributable to common stockholders for the periods presented because including them would have been antidilutive:

SCHEDULE OF ANTIDILUTIVE SECURITIES

|                               |     |                              2024 |           |     | 2023 |           |
|                               |     | For the Years Ended  December 31, |           |     |      |           |
|                               |     |                              2024 |           |     | 2023 |           |
| ISOs                          |     |                                   |     6,011 |     |      |     6,178 |
| Equity-classified Warrants    |     |                                   | 1,237,928 |     |      |   116,928 |
| Liability-classified Warrants |     |                                   |         — |     |      | 2,020,139 |
| Legacy Warrants               |     |                                   | 3,439,953 |     |      |         — |
| Representative Warrants       |     |                                   |    84,377 |     |      |         — |
| Convertible Notes             |     |                                   |         — |     |      |   431,276 |
| Preferred Stock (A series)    |     |                                   | 1,414,736 |     |      |         — |
| RSU Awards                    |     |                                   |   245,589 |     |      |   116,988 |
| Total                         |     |                                   | 6,428,594 |     |      | 2,691,509 |

NOTE 17 — SUBSEQUENT EVENTS

For its consolidated financial statements as of December 31, 2024 and for the period then ended, the Company evaluated subsequent events through the date on which those financial statements were issued. Other than the items noted below