Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 135

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 135
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’s 
 focus, and we expect overall margins to increase.                                                                                              |

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Sales and Marketing Expenses

Sales and marketing expenses were approximately
$5,938,000 for the year ended December 31, 2023 compared to approximately $6,441,000 for the year ended December 31, 2022. This approximately
$503,000 decrease included:

| Sales and Marketing Expense  |     | Years Ended December 31, 
 (rounded to $000’s)      
 2023                     |           |     | 2022 |           |     | Change |          |   |
|:-----------------------------|:----|:-------------------------|----------:|:----|:-----|----------:|:----|:-------|---------:|:--|
| Personnel                    |     | $                        | 3,259,000 |     | $    | 3,606,000 |     | $      | (347,000 | ) |
| Tasting Room                 |     |                          |   119,000 |     |      |   166,000 |     |        |  (47,000 | ) |
| Leases and Rentals           |     |                          |   712,000 |     |      |   829,000 |     |        | (117,000 | ) |
| Sales and Marketing Expenses |     |                          | 1,006,000 |     |      | 1,280,000 |     |        | (274,000 | ) |
| Other                        |     |                          |   842,000 |     |      |   560,000 |     |        |  282,000 |   |
|                              |     | $                        | 5,938,000 |     | $    | 6,441,000 |     | $      | (503,000 | ) |

| ● | The approximately $347,000 decrease in personnel expense was                                                                           
 primarily a result of our addition of four new full-time salespeople to sell into the wholesale market at the end of 2022, offset with 
 a decrease of five full-time marketing and retail administration staff in May 2023 with a net decrease reflecting in the full year of  
 2023.                                                                                                                                  |

| ● | The approximately $47,000 decrease in tasting room expenses                                  
 was primarily a result of decreased tasting room supplies and facility maintenance expenses. |

| ● | The