Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 111

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 111
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 tasting room in Eugene, Oregon),                                             |

| ● | a                                                                                               
 decrease of approximately $1,048,000, or 37.0%, in services sales, to approximately $1,787,000  
 for the year ended December 31, 2024 compared to approximately $2,835,000 for the year ended    
 December 31, 2023 resulting primarily from the termination of a low-margin third-party contract 
 in January 2024.                                                                                |

We note that total sales for the year ended December 31, 2024 would have been higher than total sales in the year ended December 31, 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