Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 356

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 356
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 net operating loss carryforwards,
credit carryovers, and other deferred tax assets may be limited or lost if the cumulative changes in ownership exceeds 50% within any
three-year period. The Company has not completed a formal Section 382/383 analysis under the Code regarding the limitation of net operating
loss and tax credit carryforwards. If a change in ownership were to have occurred, the annual limitation may result in a reduction of
available tax attributes in a given tax year.

The Company files income tax returns in the U.S.
federal jurisdiction and various state jurisdictions. Due to its operating loss carry forward, the U.S. federal statute of limitations
remains open for 2018 and onward. The Company has no ongoing or recently closed income tax examinations. The Company recognizes tax benefits
from an uncertain position only if it is more likely than not that the position is sustainable, based on its technical merits. Interest
and penalties related to uncertain tax positions are classified as income tax expense.

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

|                                   |     | For the Years Ended 
        December 31, |        |    |     |      |        |    |
|                                   |     |                2023 |        |    |     | 2022 |        |    |
| Effective Tax Rate Reconciliation |     |                     |        |    |     |      |        |    |
| Statutory Rate                    |     |                     |   21.0 | %  |     |      |   21.0 | %  |
| State Taxes                       |     |                     |   0.72 | %  |     |      |   1.84 | %  |
| Permanent Items                   |     |                     | (13.26 | )% |     |      |   3.43 | %  |
| Change in Valuation Allowance     |     |                     |  (7.83 | )% |     |      | (26.34 | )% |
| Tax Credits                       |     |                     |    0.0 | %  |     |      |    0.0 | %  |
| True-ups/Other                    |     |                     |  (0.64 | )% |     |      |    0.0 | %  |
| Total                             |     |                     |  (0.00 | )% |     |