Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 328

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 328
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 time
of completion when the finished spirits are then produced and supplied to the customer. In most cases, the barrels are stored during aging
for the customer at a fee. As of December 31, 2023 and 2022, the Company had deferred revenues of $1,039,863 and $244,248, respectively,
included in other current liabilities within the consolidated balance sheets. These performance obligations are expected to be satisfied
within one year.

Service revenue— Represents fees for
distinct value-added services that the Company provides to third parties, which may include production, bottling, marketing consulting
and other services aimed at growing and improving brands and sales. Revenue is billed monthly and earned and recognized over-time as the
agreed upon services are completed. The Company recorded $2,834,742 and $3,080,884 in service revenue in the consolidated statements of
operations for the years ended December 31, 2023 and 2022, respectively. There is no contractually committed service revenue that would
give rise to an unsatisfied performance obligation at the end of each reporting period.

<div align='center'>F-55

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements</div>

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

The following table presents revenue disaggregated
by sales channel:

|                          |     | For the Years Ended 
 December 31,        |      2023 |     |   |      2022 |
|:-------------------------|:----|:--------------------|----------:|:----|:--|----------:|
| Direct to Consumer       |     | $                   | 3,183,664 |     | $ | 3,473,326 |
| Wholesale                |     |                     | 1,657,851 |     |   | 1,643,356 |
| Third Party              |     |                     |   294,967 |     |   |   112,000 |
| Total Products Net Sales |     |                     | 5,136,482 |     |   | 5,228,682 |
| Services                 |     |                     | 2,834,742 |     |   | 3,080,884 |
| Total Net Sales          |     | $                   | 7,971,224 |     | $ | 8,309,566 |

Substantially all revenue is recognized from sales
of goods or services