Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 152

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 152
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Netting out the non -cashshare -basedcompensation from the Total Operating Expenses results in cash based Operating Expenses for 2024 of approximately $12,178,000 for 2024, which is approximately $1,238,000 less than the Operating Expenses for 2023. Net Sales Net sales were approximately $8,402,000 and $7,971,000 for the years ended December 31, 2024 and 2023, respectively, an increase of approximately $431,000, or 5.4%, period over period. The increase in net sales resulted primarily from: •an increase in product sales of approximately $1,479,000, or 28.8%, to approximately $6,615,000 for the year ended December31, 2024, compared to approximately $5,136,000 for the year ended December31, 2023, due mainly to the launch of the Special Operations Servicesproduct line in November 2023 (with sales of associated with that new product line of approximately $1,635,000 and $465,000 for the years ended December31, 2024 and 2023, respectively). The year over year change in product sales also included lesser impacts as a result of: reduced sales following the closure of our Ballard, Washington retail location in late March 2023 (which generated almost a full quarter of retail tasting room revenue in early 2023); offset by increased sales as a result of our acquisition of Thinking Tree Spirits (“TTS”) in February 2024 (and the resulting increase from sales of TTS products and revenue from the acquired TTS tasting room in Eugene, Oregon), •a decrease of approximately $1,048,000, or 37.0%, in services sales, to approximately $1,787,000 for the year ended December31, 2024 compared to approximately $2,835,000 for the year ended December31, 2023 resulting primarily from the termination of a low -marginthird -partycontract in January 2024. We note that total sales for the year ended December 31, 2024 would have been higher than total sales in the year ended December 31, 2023 had we not closed our Ballard, Washington tasting room in March of 2023 in connection with our decision not to renew the lease for that facility, which we believe demonstrates that 2023 was a year of stabilization in anticipation of new product launches and new wholesale markets opening in