Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 281

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 281
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 |      |                  515,307 |     |      |   872,616 |
| Total Net Sales          |     | $    |                  1,321,822 |     | $    | 1,842,315 |     | $    |                2,413,805 |     | $    | 3,548,474 |

F-16 Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Substantially all revenue is recognized from sales of goods or services transferred when contract performance obligations are met. As such, the accompanying condensed consolidated financial statements present financial information in a format which does not further disaggregate revenue, as there are no significant variations in economic factors affecting the nature, amount, timing, and uncertainty of cash flows. Excise taxes— Excise taxes are levied on alcoholic beverages by governmental agencies. For imported alcoholic beverages, excise taxes are levied at the time of removal from the port of entry and are payable to the U.S. Customs and Boarder Protection (the “CBP”). For domestically produced alcoholic beverages, excise taxes are levied at the time of removal from a bonded production site and are payable to the Alcohol and Tobacco Tax and Trade Bureau (the “TTB”). These taxes are not collected from customers but are instead the responsibilities of the Company. The Company’s accounting policy is to include excise taxes in “Cost of Sales” within the consolidated statements of operations, which totaled $39,687 and $47,225 for the three months ended June 30, 2025 and 2024, respectively; and $70,263 and $93,067 for the six months ended June 30, 2025 and 2024, respectively. Shipping and handling costs— Shipping and handling costs of $27,339 and $19,518 were included in “Cost of Sales” within the condensed consolidated statements of operations for the three months ended June 30, 2025 and 2024, respectively. Shipping and handling costs of $81,110 and $109,444 were included in “Cost of Sales” within the condensed consolidated statements of operations for the six months ended June 30, 2025 and 2024, respectively. Stock -based compensation— The Company measures compensation for all stock -basedawards at fair value on the grant date and recognizes compensation expense over the service period on