Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 335

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 2
Chunk 335
---
the date of our initial public offering). 

Income Taxes

Our income tax provision consists of an estimate for U.S. federal and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities and changes in tax law. We are conducting a Section 382 net operating loss (“NOL”) review to determine to what extent our past NOLs can be used moving forward given the size of the August 15, 2025 PIPE and the total number of new shares issued relative to our previously outstanding shares of common stock. We anticipate that report will be finalized in time for the filing of our annual report.

Comparison of the Results of Operations for the Three Months Ended September 30, 2025 and 2024 

The numbers presented below that have been rounded for presentation purposes and 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 three months ended September 30, 2025 and 2024.

58

For the Three Months EndedSeptember 30,20252024ChangeNet Revenue Products$815,514 $1,375,230 $(559,716)Services264,943 386,204 (121,261)Crypto and Related1,908,544—1,908,544Total Net Revenue2,989,001 1,761,434 1,227,567 Cost of RevenueProducts1,074,878 1,117,516 (42,638)Services28,778 14,175 14,603 Crypto and Related53,342 — 53,342 Total Cost of Revenue1,156,998 1,131,691 25,307      Total Gross Profit1,832,003 629,743 1,202,260 Operating ExpensesSales and Marketing1,023,935 1,271,063 (247,128)General and Administrative1,956,900 1,438,770 518,130 Total Operating Expenses2,980,835 2,709,833 271,002 Operating Loss(1,148,832)(2,080