Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 106

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 106
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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 2024 to begin our growth.

The approximately $1,479,000 net increase in products sales, period over period, included:

|           | Products 
 Sales    | Years              
 Ended December 31, 
 (rounded           
 to $000’s)         |      2024 |     |   |      2023 |     |   |    Change |   |
|:----------|:---------|:-------------------|----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Wholesale |          | $                  | 1,596,000 |     | $ | 1,658,000 |     | $ |   (62,000 | ) |
| Retail    |          |                    | 3,899,000 |     |   | 3,183,000 |     |   |   716,000 |   |
| Third     
 Party     |          |                    | 1,120,000 |     |   |   295,000 |     |   |   825,000 |   |
|           |          | $                  | 6,615,000 |     | $ | 5,136,000 |     | $ | 1,479,000 |   |

| ● | The                                                                                           
 approximately $716,000 increase in retail products sales was primarily a result of the launch 
 of our Special Operations Salute line in November 2023 and is an important part of            
 our strategy as our margins on sales direct to consumers are highest for us. The year over    
 year change 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 TTS in February 2024 (and the resulting increase from sales of TTS      
 products and revenue from the acquired TTS tasting room in Eugene, Oregon).                   |

| 61 |

| ● | The                                                                                         
 approximately $825,000 increase in third-party products sales was primarily a result of our 
 production of bulk