Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 102

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 102
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 of higher margin items, we expect this Products gross margin to increase significantly 
 (See also below our comments related to this in more detail in Non-GAAP Financial Measures).     |

Sales and Marketing Expenses

Sales and marketing expenses were approximately $1,315,000 for the three months ended March 31, 2025 compared to approximately $1,190,000 for the three months ended March 31, 2024. This approximately $125,000 increase included:

| Sales and Marketing                        
 Expense                                    |     | Three               
 Months Ended  March 
 31,  (rounded       
 to $000’s)          
 2025                |           |     | 2024 |           |     | Change |         |   |
|:-------------------------------------------|:----|:--------------------|----------:|:----|:-----|----------:|:----|:-------|--------:|:--|
| Personnel - Cash Wages and Related Expense |     | $                   |   729,000 |     | $    |   645,000 |     | $      |  84,000 |   |
| Tasting Room                               |     |                     |    22,000 |     |      |    34,000 |     |        | (12,000 | ) |
| Leases and Rentals                         |     |                     |   190,000 |     |      |   166,000 |     |        |  24,000 |   |
| Sales and Marketing Expenses               |     |                     |   206,000 |     |      |    96,000 |     |        | 110,000 |   |
| Other                                      |     |                     |   168,000 |     |      |   249,000 |     |        | (81,000 | ) |
|                                            |     | $                   | 1,315,000 |     | $    | 1,190,000 |     | $      | 125,000 |   |

| ● | The                                                                                         
 approximately $84,000 increase in personnel expense was primarily a result of moving a full 
 time employee into the Salute Series sales pipeline to drive more adoption and to grow the  
 brand.                                                                                      |

| 67 |

| ● | The                                                                                             
 approximately $110,000 increase in sales and marketing expenses included: an increase in        
 digital advertising production expense to drive DtC sales of our highest margin spirits brands, 
 offset by decreases in