Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 109

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 109
---
2024, compared to approximately $5,136,000 for the year ended 
 December 31, 2023, due mainly to the launch of the Special Operations Services product        
 line in November 2023 (with sales of associated with that new product line of approximately   
 $1,635,000 and $465,000 for the years ended December 31, 2024 and 2023, respectively). The    
 year over year change in product sales also included lesser impacts as a result of: reduced   
 sales following the closure of our Ballard, Washington retail location in late March 2023     
 (which generated almost a full quarter of retail tasting room revenue in early 2023); offset  
 by increased sales as a result of our acquisition of Thinking Tree Spirits (“TTS”)            
 in February 2024 (and the resulting increase from sales of TTS products and revenue from      
 the acquired TTS tasting room in Eugene, Oregon),                                             |

| ● | a                                                                                               
 decrease of approximately $1,048,000, or 37.0%, in services sales, to approximately $1,787,000  
 for the year ended December 31, 2024 compared to approximately $2,835,000 for the year ended    
 December 31, 2023 resulting primarily from the termination of a low-margin third-party contract 
 in January 2024.                                                                                |

We note that total sales for the year ended December 31, 2024 would have been higher than total sales in the year ended December 31, 2023 had we not closed our Ballard, Washington tasting room in March of 2023 in connection with our decision not to renew the lease for that facility, which we believe demonstrates that 2023 was a year of stabilization in anticipation of new product launches and new wholesale markets opening in 2024 to begin our growth.

The approximately $1,479,000 net increase in products sales, period over period, included:

|             | Products Sales | Years Ended  December 31,  (rounded to $000’s) |      2024 |     |   |      2023 |     |   |    Change |   |
|:------------|:---------------|:-----------------------------------------------|----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Wholesale   |                | $                                              | 1,596,000 |     | $ | 1,658,000 |     | $ |   (