Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 331

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 331
---
 consolidated financial statements. Under this method, deferred tax assets and liabilities are determined
based on the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect
for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities
is recognized in operations in the period that includes the enacted date.

Net loss per share attributable to common stockholders— The
Company computed basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders
by the weighted-average number of common stock outstanding for the period, without consideration for potentially dilutive securities.
The Company computes diluted net loss per common share after giving consideration to all potentially dilutive common stock, including
stock options, restricted stock unit (“RSU”) awards, and warrants to purchase common stock outstanding during the period determined
using the treasury-stock method as well as the convertible notes outstanding during the period determined using the if-converted method,
except where the effect of including such securities would be antidilutive.

Recently adopted accounting pronouncements standards— In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326), which establishes
a new approach to estimate credit losses on certain financial instruments. The update requires financial assets measured at amortized
cost to be presented at the net amount expected to be collected. The amended guidance will also update the impairment model for available-for-sale
debt securities, requiring entities to determine whether all or a portion of the unrealized loss on such securities is a credit loss.
The standard became effective for interim and annual periods beginning after December 15, 2022. Effective January 1, 2023, the
Company adopted the provisions of ASU No. 2016-13 and determined that adoption did not have a material impact on our consolidated
financial statements.

<div align='center'>F-57

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements</div>

NOTE 3 — INVENTORIES

Inventories consisted of the following:

|                 |     | As of December 31, |      2023 |     |   |      2022 |
|:----------------|:----|:-------------------|----------:|:----|:--|----------:|
| Finished Goods  |     | $                  |   531,302 |     | $ |   877,