Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 151

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 151
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 any resulting gain or loss to be recognized based on that final price. 88

While we believe some amount of the NOLs will be available to use in the future, since the amount cannot yet be quantified, we have elected to fully reserve against the use of any such tax benefits at this time. Further, the net income and the resulting tax for the nine months ended September 30, 2025 is based on the fair value of $8.54 per $IP Token as of September 30, 2025. Given the closing price of the $IP Token of $3.32 subsequent to September 30, 2025 (at the close of November 13, 2025), the currently reported gain on change in fair value of intangible digital assets reported for the nine months ended September 30, 2025 would necessarily assumed to be offset by losses on change in fair value of intangible digital assets in the quarter ended December 31, 2025. We would then anticipate reducing or eliminating any tax liability in the aggregate for the full year ending December 31, 2025. Comparison of the Results of Operations for the Years Ended December 31, 2024 and 2023 The numbers presented below that have been rounded for presentation purposes have been rounded individually. As a result, totals may reflect the effect of differences between: aggregating the individually rounded component numbers; and the rounding of the total of the individual (non -rounded) component numbers. In cases where rounding occurred, the amount of the rounding difference is generally $1,000 or less. Such differences are considered to be insignificant. The following table summarizes our results of operations for the years ended December 31, 2024 and 2023.

| Net Sales                                         |     | For the Years Ended 
 December 31,        
 2024                |             |   |     | 2023 |             |   |     | Change |            |   |
|:--------------------------------------------------|:----|:--------------------|------------:|:--|:----|:-----|------------:|:--|:----|:-------|-----------:|:--|
| Products                                          |     | $                   |   6,614,933 |   |     | $    |   5,136,482 |   |     | $      |  1,478,451 |   |
| Services                                          |     |                     |   1,787,555 |   |     |      |