Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 108

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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 diluted(1)11,555,389 22,097 4,236,733 228,991 Net Income / (Loss) per share of common stock - diluted$16.97 $(160.41)$43.58 $(62.42)(1)Includes 5,000 prepaid warrants for the nine month period ended September 30, 2025. Diluted earnings / (loss) per share reflect the potential dilution of securities that could share in the earnings of an entity. For the three and nine months ended September 30, 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 / (loss). The following number of shares of common stock from the potential exercise or conversion of outstanding potentially dilutive securities were excluded from the 

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)NOTE 14 — BASIC AND DILUTED NET LOSS PER SHARE (cont.)

computation of diluted net income / (loss) per share attributable to common stockholders for the periods presented because including them would have been antidilutive:For the Three and NineMonths Ended September 30, 20252024ISOs119 301 RSU Awards125,000 12,154Equity-classified Warrants87,78416,875Liability-classified Warrants— 45,417 Legacy Warrants176,165 — Warrants issued with Preferred Stock (Series B)37,498 — Convertible Notes— 147,301 Preferred Stock (Series A)41,597 53,265 Preferred Stock (Series B) 22,472 — Total490,635 275,313 

NOTE 15 — SEGMENT REPORTING

Due to the launch of the $IP Token treasury reserve strategy in August 2025 and continual assessment of the requirements under ASC 280, Segment Reporting, the Company has reassessed its segment conclusions and determined that effective with this Quarterly Report on Form 10-Q, the Company is presenting two operating and reportable segments: one reportable segment that produces and sells alcohol beverages under various brands (the “Heritage Distilling Segment”); and one segment that manages the Company’s intangible digital asset treasury (the “IP Strategy Segment”). In the Heritage Distilling Segment,