Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 250

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 250
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,573,0635,761,994

56

Net Sales

Six Months Ended June 30,(rounded to $000’s)Total Sales20252024ChangeProducts$1,899,000 $2,676,000 $(777,000)Services515,000 873,000 (358,000)$2,414,000 $3,549,000 $(1,135,000)

Net sales were approximately $2,414,000 and $3,549,000 for the six months ended June 30, 2025 and 2024, respectively, a decrease of approximately $1,135,000, or 32.0%, period over period. 

The approximately $777,000 net decrease in products sales, period over period, included:

Products SalesSix Months Ended June 30,(rounded to $000’s) 20252024ChangeWholesale$727,000 $807,000 $(80,000)Retail1,172,000 1,682,000 (510,000)Third Party— 187,000 (187,000) $1,899,000 $2,676,000 $(777,000)

•The approximately $80,000 decrease in wholesale product sales was primarily the result of the timing of orders through the wholesale channel moved into second quarter 2025 that occurred in first quarter 2024 and the reduction of sales of low margin spirits as we continue to move our emphasis to higher margin items. 

•Retail products sales included the impact of sales from the launch of our Special Operations Salute product line in November 2023, with sales associated with that new product line of approximately $331,000 and $695,000 for the six months ended June 30, 2025 and 2024,and which is an important part of our strategy as our margins on sales direct to consumers are highest for us. The year over year approximately $510,000 decrease included is the result of the timing of orders fulfilled through the DtC retailer channel, which consisted of large load in by the retailers in the fourth quarter 2024, modest reorders in the first quarter 2025 as the retailers moved through their inventory and the movement of reorders into second quarter 2025 that occurred in first quarter 2024 for DtC items. A portion of the reduction in retail revenue in six months ended June 30, 2025 versus 2024 was also from the reduction of