Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 141

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 141
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 2025. For the nine months ended September 30,2025, substantially all Crypto and Related Revenue related to Self -Staking Cost of Sales — Spirits Business Cost of sales were approximately $3,018,000 and $3,524,000 for the nine months ended September 30, 2025 and 2024, respectively, a decrease of approximately $506,000, or 14.4%, period over period. Cost of Sales for the nine months ended September 30, 2025 included approximately $121,000 of non -cashshare -basedcompensation expenses related to RSU grant awards recognized in the nine months ended September 30, 2025 for production employees compared to no such award recognition in 2024. Removing the $121,000 in non -cashshare -basedcompensation from the cost of the sales indicates the adjusted cost of sales for the spirits business from an inputs and other overhead perspective was $627,000 less than the same period over period, or a reduction of 17.8%.

| Cost of Sales – Spirits Business 
 2025                             |     | Nine Months Ended   
 September 30,       
 (rounded to $000’s) |      2024 |     |   |           |     | Change |          |   |
|:---------------------------------|:----|:--------------------|----------:|:----|:--|----------:|:----|:-------|:---------|:--|
| Products                         |     | $                   | 2,972,000 |     | $ | 3,429,000 |     | $      | (457,000 | ) |
| Services                         |     |                     |    46,000 |     |   |    95,000 |     |        | (49,000  | ) |
|                                  |     | $                   | 3,018,000 |     | $ | 3,524,000 |     | $      | (506,000 | ) |

The approximately $457,000 decrease in net products cost of sales period over period included: a decrease in product cost of approximately $599,000 to approximately $1,176,000 for the nine months ended September 30, 2025, from approximately $1,775,000 for the nine months ended September 30, 2024, and an increase in unabsorbed overhead of approximately $142,000 to approximately $1,796,000 as of September 30