Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 127

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 127
---
 |    94,000 |     |        |   15,000 |   |
| Leases and Rentals           |     |                     |   542,000 |     |      |   550,000 |     |        |   (8,000 | ) |
| Sales and Marketing Expenses |     |                     |   356,000 |     |      |   810,000 |     |        | (454,000 | ) |
| Other                        |     |                     |   679,000 |     |      |   588,000 |     |        |   91,000 |   |
|                              |     | $                   | 3,760,000 |     | $    | 4,563,000 |     | $      | (803,000 | ) |

| ● | The approximately $447,000 decrease                                                                                                
 in personnel expense was primarily a result of a decrease of five full-time marketing and retail administration staff in May 2023. |

| ● | The approximately $8,000 decrease                                                                                         
 in leases and rentals expenses was primarily due to the closure of our Ballard, Washington retail location in March 2023. |

| ● | The approximately $454,000 decrease                                                                                                            
 in sales and marketing expenses included: an increase in digital advertising production expense, which was offset by decreases in sponsorships 
 and print advertising as we shifted to a new third-party e-commerce platform; two large sports sponsorships that were put under contract       
 before COVID-19 shutdowns went into effect, which contracts were reinstated in 2022 and 2023, could not be cancelled and are not being         
 renewed for 2024 or beyond.                                                                                                                    |

| ● | The approximately $91,000 increase                                                                                                          
 in other sales and marketing expenses included increases in: professional fees for contracted Chief Revenue Officer services and e-commerce 
 distribution services and travel; software for an improved point-of-sale software upgrade; location utilities and insurance; and a net      
 increase in other sales and marketing expenses.                                                                                             |

<div align='center'>77</div>

General and Administrative Expenses

General and administrative expenses were approximately
$4,632,000 for the nine months ended September 30, 2024, compared to approximately $6,003,000 for the nine months ended September
30, 2023. This approximately $1,371,000 decrease included:

|                          | General and Administrative Expense | Nine Months Ended   
 September 30,       
 (