Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 166

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 166
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 are that: •Adjusted Gross Profit, EBITDA and adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; •Adjusted Gross Profit, 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 -cashcharges such as depreciation of property and equipment and, although this is a non -cashcharge, 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 -GAAPfinancial 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 nine months ended September 30, 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.

| Gross Profit Analysis Excluding Unabsorbed          
 Overhead                                            
 2025                                                |     | Nine Months Ended   
 September 30,       
 (rounded to $000’s) |           | 2024 |     |   |           | 2024 |     | Years Ended         
 December 31,        
 (rounded to $000’s) |           | 2023 |     |   |           |   |
|:----------------------------------------------------|:----|:--------------------|----------:|:-----|:----|:--|----------:|:-----|:----|:--------------------|----------:|:-----|:----|:--|----------:|:--|
| GAAP Total Net Sales                                |     | $                   | 3,494,000 |      |     | $ | 5,310,000 |      |     |