Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 219

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 219
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, 2024 and 2023 were $ 54,030and $ 66,271, respectively.

Third Party— The Company produces and sells barreled spirits to Third Party customers who either hold them for investment or who have a plan to use the product in the future once the spirits are finished aging. Third Party Barreled Spirits are paid with a deposit up front, with the remainder billed at the time of completion when the finished spirits are then produced and supplied to the customer. In most cases, the barrels are stored during aging for the customer at a fee. As of December 31, 2024 and 2023, the Company had deferred revenues of $ 100,099and $ 1,039,863, respectively, included in other current liabilities within the consolidated balance sheets. These performance obligations are expected to be satisfied within one year.

| F-15 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Service revenue— Represents fees for distinct value-added services that the Company provides to third parties, which may include production, bottling, marketing consulting and other services aimed at growing and improving brands and sales. Revenue is billed monthly and earned and recognized over-time as the agreed upon services are completed. The Company recorded $ 1,787,555and $ 2,834,742in service revenue in the consolidated statements of operations for the years ended December 31, 2024 and 2023, respectively. There is no contractually committed service revenue that would give rise to an unsatisfied performance obligation at the end of each reporting period.

The following table presents revenue disaggregated by sales channel:

SCHEDULE OF REVENUE DISAGGREGATED BY SALES

|                          |     | For the Years Ended  December 31, 
 2024                              |      2024 |     | 2023 |      2023 |
|:-------------------------|:----|:----------------------------------|----------:|:----|:-----|----------:|
| Direct to Consumer       |     | $                                 | 3,899,493 |     | $    | 3,183,664 |
| Wholesale                |     |                                   | 1,595,553 |     |      | 1,657,851 |
| Third Party              |     |                                   | 1,119,887 |     |      |   294,967 |
| Total