Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024441
Chunk: 93

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 93
---
 the full year 2024, indicating our efforts aimed at reducing overhead expenses and focusing on high margin items are starting to bear fruit.

| 53 |

Gross Profit Analysis

Gross Margin numbers above are based on the total sales for the three months ended June 30, 2025 and 2024 as follows:

| Total Sales |     | Three                                     
 Months Ended June 30, (rounded to $000’s) 
 2025                                      |           |     |   |      2024 |     |   | Change   |   |
|:------------|:----|:------------------------------------------|----------:|:----|:--|----------:|:----|:--|:---------|:--|
| Products    |     | $                                         | 1,060,000 |     | $ | 1,445,000 |     | $ | (385,000 | ) |
| Services    |     |                                           |   261,000 |     |   |   399,000 |     |   | (138,000 | ) |
|             |     | $                                         | 1,321,000 |     | $ | 1,844,000 |     | $ | (523,000 | ) |

Sales and Marketing Expenses

Sales and marketing expenses were approximately $1,973,000 for the three months ended June 30, 2025 compared to approximately $1,298,000 for the three months ended June 30, 2024. This approximately $675,000 increase included:

| Sales and Marketing Expense                |     | Three                                     
 Months Ended June 30, (rounded to $000’s) 
 2025                                      |           |     |   |      2024 |     |   |  Change |   |
|:-------------------------------------------|:----|:------------------------------------------|----------:|:----|:--|----------:|:----|:--|--------:|:--|
| Personnel - Cash Wages and Related Expense |     | $                                         |   826,000 |     | $ |   664,000 |     | $ | 162,000 |   |
| Personnel - Share-Based Compensation       |     |                                           |   647,000 |     |   |         — |     |   | 647,000 |   |
| Tasting Room                               |     |                                           |    22,000 |     |   |    35,000 |     |