Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 362

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 362
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 Holding Company, Inc.
Notes to Consolidated Financial Statements</div>

NOTE 15 — BASIC AND DILUTED NET LOSS PER SHARE

The Company computes basic net income (loss) per
share by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. The
Company computes diluted net income (loss) per share by dividing net income (loss) for the period by the weighted-average number of common
shares outstanding during the period, plus the dilutive effect of the stock options, RSU awards and exercisable common stock warrants,
as applicable pursuant to the treasury stock method, and the convertible notes, as applicable pursuant to the if-converted method. The
following table sets forth the computation of basic and diluted net loss per share:

| Numerator:                                                    |     | For the Years Ended 
 December 31,        
 2023                |             |   |     | 2022 |             |   |
|:--------------------------------------------------------------|:----|:--------------------|------------:|:--|:----|:-----|------------:|:--|
| Net Loss                                                      |     | $                   | (36,798,419 | ) |     | $    | (12,268,216 | ) |
| Denominator:                                                  |     |                     |             |   |     |      |             |   |
| Weighted Average Common Shares Outstanding, Basic and Diluted |     |                     |     381,543 |   |     |      |     381,266 |   |
| Net Loss Per Share, Basic and Diluted                         |     | $                   |      (96.45 | ) |     | $    |      (32.18 | ) |

Diluted earnings per share reflect the potential
dilution of securities that could share in the earnings of an entity. The following outstanding shares of potentially dilutive securities
were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because
including them would have been antidilutive:

|                               |     | For the Years Ended 
        December 31, |           |     |      |         |
|                               |     |                2023 |           |     | 2022 |         |
| ISOs                          |     |                     |     6,178 |     |      |   8,137 |
| Equity-classified Warrants    |     |                     |   116,928 |     |