Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 134

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 134
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:----|:--|---------:|:--|
| Spirits – Wholesale           |                              | $                         | 1,388,000 |     | $ | 1,398,000 |     | $ |  (10,000 | ) |
| Spirits – Retail              |                              |                           |   769,000 |     |   |   764,000 |     |   |    5,000 |   |
| Spirits – Third Party         |                              |                           |   230,000 |     |   |    37,000 |     |   |  193,000 |   |
| Hand Sanitizer – Wholesale    |                              |                           |    35,000 |     |   |         — |     |   |   35,000 |   |
| Hand Sanitizer – Retail       |                              |                           |    11,000 |     |   |         — |     |   |   11,000 |   |
| Merchandise and Prepared Food |                              |                           |   318,000 |     |   |   361,000 |     |   |  (43,000 | ) |
| Unabsorbed Overhead           |                              |                           | 2,212,000 |     |   | 2,685,000 |     |   | (473,000 | ) |
|                               |                              | $                         | 4,963,000 |     | $ | 5,245,000 |     | $ | (282,000 | ) |

| ● | The larger realized increase in third-party production costs                                                                            
 indicates low margins on those efforts, which is the principal reason why management is moving us away from those efforts starting in   
 2024 as we execute on our plan to open more TBN locations and look to realize significant gains in both topline revenue and high-margin 
 DtC sales for our Salute Series whiskey and expanded wholesale distribution of our core products in key states. Management is           
 also working with our wholesale sales team to move us out of the low margin well vodka business in favor of high margin premium whiskey 
 products.                                                                                                                               |

<div align='center'>82</div>

| ● | The approximately $46,000 in one-time aggregate hand sanitizer                                                                          
 cost of sales for the year ended December 31, 2023 was due to a vendor bill from 2020 that we did not receive until early 2023 when the 
 vendor audited its