Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 141

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 141
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 in 2024 our retail locations were open seven days per week. We reopened those locations on Mondays and Tuesdays as we approached to the Memorial Day holiday to take advantage of higher summer foot traffic. •The approximately $226,000 decrease in third -partyproducts sales was primarily a result of winding down our contracts on producing bulk whiskey for third parties in 2024 as we continue to shift our focus and resources into higher margin activities. The approximately $479,000 decrease in net sales of services period over period included:

| Services Sales – Spirits Business 
 2025                              |     | Nine Months Ended   
 September 30,       
 (rounded to $000’s) |    2024 |     |   |           |     | Change |          |   |
|:----------------------------------|:----|:--------------------|--------:|:----|:--|----------:|:----|:-------|:---------|:--|
| Third Party Production            |     | $                   |  20,000 |     | $ |   124,000 |     | $      | (104,000 | ) |
| Retail Services                   |     |                     | 737,000 |     |   | 1,044,000 |     |        | (307,000 | ) |
| Consulting and Other              |     |                     |  23,000 |     |   |    91,000 |     |        | (68,000  | ) |
|                                   |     | $                   | 780,000 |     | $ | 1,259,000 |     | $      | (479,000 | ) |

•The approximately $104,000 decrease in third -partyproduction resulted from the ending of a low -marginthird -partybottling contract as of January31, 2024. The bulk of our revenue in this category included production services revenue related to a contract we had to produce a gin for a large

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international spirit brand owner as we made the choice to focus our time, energy and resources on higher margin activities. Lesser amounts of revenue in this category in 2024 came from contract bottling services; and third -partybarrel sales and storage revenues. •The approximately $307,000 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.