Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 112

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 112
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, 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 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 by removing unabsorbed overhead for the three months ended March 31, 2025 and 2024, and the years ended December 31, 2024 and 2023. Adjusted Gross Margin excluding unabsorbed overhead is the percentage obtained by dividing Adjusted Gross Profit after removing unabsorbed overhead by our GAAP total net sales. It is an analysis that assumes all excess production capacity and space has been used in production and generating revenue, assigning all such overhead costs across all production and revenue. It is especially important in forecasting to larger entities that may be looking to acquire brands or entities about the amount of inefficiencies they can wring out of a products or production if such products or ventures were acquired and absorbed into their larger and more efficient systems.

| 78 |

| Gross Profit Analysis Excluding Unabsorbed Overhead |     | 2025 |               Three 
 Months Ended  March 
       31,  (rounded 
          to $000’s) |   |     | 2024 |           |   |     | 2024 |           Years 
 Ended  December 
   31,  (rounded 
      to $000’s) |   |     | 2023 |           |   |
|:----------------------------------------------------|:----|:-----|--------------------:|:--|:----|:-----|----------:|:--|:----|:-----|----------------:|:--|:----|:-----|----------:|:--|
| GAAP Total Net Sales                                |     | $    |           1,092,000 |   |     | $    | 1,706,000 |   |