Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 114

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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 the second quarter related to several cryptocurrency treasury strategies visa vi its overall retail focus while working to reduce overhead and preserve cash as it evaluated several possible cryptocurrency transactions. As a result, the Company pulled back on significant marketing spend for its goods and services as it focused its attention on evaluating the cryptocurrency landscape. The year over year approximate 336,000 decrease included second quarter 2024 DtC sales decrease from continued sales of the Salute Series Army initial edition and the launch of the D-Day Series which included three products. DtC sales for second quarter 2025 was a more modest launch of two new editions, Green Beret and Iwo Jima. A portion of the reduction in retail revenue in the three months ended June 30, 2025 versus 2024 was also from the continued reduction of hours in some of our brick and mortar retail locations April through May, and the decision to close some locations on Mondays and Tuesdays to reduce labor expenses on our slowest retail sales days during the quarter. During the same period in 2024 our retail locations were open seven days per week. We reopened those locations on Mondays and Tuesdays close to the Memorial Day holiday to take advantage of higher summer foot traffic. Also contributing to the decrease was the closure of our Thinking Tree Spirits location that was open in the second quarter 2024.

The approximately $139,000 decrease in net sales of services period over period included:

Services SalesThree Months Ended June 30,(rounded to $000’s)20252024ChangeThird Party Production$7,000 $6,000 $1,000 Retail Services247,000 365,000 (118,000)Consulting and Other6,000 28,000 (22,000) $260,000 $399,000 $(139,000)

•The approximately $118,000 decrease in retail services was the result of the reduction of hours in some of our brick and mortar retail locations as we made the decision to close some locations on Mondays and Tuesday to reduce labor expenses on our slowest retail sales days during the quarter. During the same period in 2024 our retail locations were open seven days per week. We plan to reopen those locations on Mondays and Tuesdays as we get closer to the Memorial Day holiday to take advantage of higher summer foot traffic.

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•The approximately $22,000 decrease in consulting fees is related to TBN projects as we saw the successful completion and opening of the Stillaguamish project in October