Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 354

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 354
---
3, certain senior level employees elected to defer a portion of their salary until such time as the Company completed a
successful public registration of its stock. Upon success of the public registration, each employee will then be paid their deferred salary
plus $2 dollars in RSUs or stock options (under the new 2024 Plan — See Note 16) for every $1 dollar of deferred
salary. As of December 31, 2023, the Company recorded about $407,963 including employer tax obligation of such deferred payroll expense,
included in accrued liabilities. Accordingly, as of December 31, 2023 the Company has also committed to issue approximately $650,138 in
equity compensation related to the deferred compensation.

NOTE 10 — INCOME TAXES

The tax effects of significant items comprising
the Company’s deferred taxes as of December 31 are as follows:

| Deferred Tax Assets                |     | December 31, 
 2023         |             |   |     | 2022 |            |   |
|:-----------------------------------|:----|:-------------|------------:|:--|:----|:-----|-----------:|:--|
| Reserves                           |     | $            |      74,283 |   |     | $    |     83,134 |   |
| Deferred Wages                     |     |              |      93,745 |   |     |      |          — |   |
| Lease Liability                    |     |              |   1,005,696 |   |     |      |  1,072,236 |   |
| Net Operating Loss Carryforwards   |     |              |  11,250,985 |   |     |      |  8,973,639 |   |
| Credit Carryforwards               |     |              |     164,796 |   |     |      |     91,614 |   |
| Fixed Asset Basis                  |     |              |   1,016,323 |   |     |      |    517,435 |   |
| Other Carryforwards                |     |              |      55,583 |   |     |      |     16,616 |   |
| Allowance for Bad Debts            |     |              |           — |   |     |      |     16,969 |   |
| Total Deferred Tax Assets          |     |              |  13,661,412 |