Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 219

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 219
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for overnight settling. If the Company’s account exceeds the FDIC limit of $ 250,000at the end of the business day, funds are automatically swept out by the Company’s bank and spread among partner banks in accounts, each totaling less than $ 250,000. This makes the Company’s funds eligible for FDIC insurance protection each day. The funds are then swept back into the Company’s account at the beginning of the next business day. The aggregate limit that can be protected for the Company under this program is approximately $ 150million.

The Company considers the concentration of credit risk associated with its accounts receivable to be commercially reasonable and believes that such concentration does not result in the significant risk of near-term severe adverse impacts. As of March 31, 2025 and December 31, 2024, the Company had customers that individually represented 10% or more of the Company’s accounts receivable. There were five and two individual customers that together represented 84% and 77% of total accounts receivable, as of March 31, 2025 and December 31, 2024, respectively.

| 135 |

Heritage Distilling Holding Company, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

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

SCHEDULE OF CONCENTRATION OF RISK

|                                |     |                   2025 |    |   |     | 2024 |    |   |
| Concentration of Revenues      |     |                  Three 
 Months Ended March 31, |    |   |     |      |    |   |
|                                |     |                   2025 |    |   |     | 2024 |    |   |
| Customer A                     |     |                        | 16 | % |     |      | 27 | % |
| Customer B                     |     |                        | 25 | % |     |      | 11 | % |
| Customer C                     |     |                        | 15 | % |     |      | 13 | % |
| Customer D                     |     |                        | 31 | % |     |      |  — | % |
| Customer E                     |     |                        |  — | % |     |      | 18 | % |
| Customer F                     |     |                        |  — | % |     |      | 12 | % |
| Concentration risk, percentage |     |                        | 87