Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 151

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 151
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 products cost of sales period over period is further detailed as follows:

| Cost of Sales Products Sales  
 2025                          |     | Six Months Ended June 30, 
 (rounded to $000’s)       |      2024 |     |   |    Change |     |   |          |   |
|:------------------------------|:----|:--------------------------|----------:|:----|:--|----------:|:----|:--|:---------|:--|
| Spirits – Wholesale           |     | $                         |   477,000 |     | $ |   580,000 |     | $ | (103,000 | ) |
| Spirits – Retail              |     |                           |   287,000 |     |   |   339,000 |     |   | (52,000  | ) |
| Spirits – Third Party         |     |                           |         — |     |   |   113,000 |     |   | (113,000 | ) |
| Merchandise and Prepared Food |     |                           |    65,000 |     |   |   107,000 |     |   | (42,000  | ) |
| Unabsorbed Overhead           |     |                           | 1,043,000 |     |   | 1,172,000 |     |   | (129,000 | ) |
|                               |     | $                         | 1,872,000 |     | $ | 2,311,000 |     | $ | (439,000 | ) |

•The approximately $103,000 decrease in wholesale product cost of sales to approximately $477,000 for the six months ended June30, 2025 compared to approximately $580,000 for the six months ended June30, 2024 was primarily the result of the shifting of some wholesale orders from the first quarter to the second quarter based on timing of reorders in the wholesale channel and the continued reduction of focus on our part on low margin items as we shift focus to higher margin items. •The decrease to $0 in third -partyproduction costs is due to no such activity in the six months ended June30, 2025. •Our unabsorbed overhead, which is a measure of our capacity relative to our current utilization, decreased by approximately $129,000 to approximately $1,043,000 for the six months ended June30, 2025 compared to approximately $1,172