Company: IPST
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001788230-25-000048
Chunk: 148

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 148
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,045,000 and $13,416,000 for the years ended December 31, 2024 and 2023, respectively, included non-cash share-

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based compensation for employees (personnel) and consultants of approximately $4,892,000 and $19,000, respectively, as follows:

Years Ended December 31, (rounded to $000’s)20242023ChangeProduction / Cost of Sales$178,000 $— $178,000 Sales and Marketing730,000 — 730,000 General and Administrative2,414,000 6,000 2,408,000      Subtotal Employee Compensation3,322,000 6,000 3,316,000 Professional Fees (General and Administrative)1,570,000 13,000 1,557,000      Total Non-Cash Share-Based Compensation$4,892,000 $19,000 $4,873,000 

Netting out the non-cash share-based compensation from the Total Operating Expenses results in cash based Operating Expenses for 2024 of $12,177,858 for 2024, which is $1,237,742 less than the Operating Expenses for 2023.

Net Sales

Net sales were approximately $8,402,000 and $7,971,000 for the years ended December 31, 2024 and 2023, respectively, an increase of approximately $431,000, or 5.4%, period over period. The increase in net sales resulted primarily from:

•an increase in product sales of approximately $1,479,000, or 28.8%, to approximately $6,615,000 for the year ended December 31, 2024, compared to approximately $5,136,000 for the year ended December 31, 2023, due mainly to the launch of the Special Operations Services product line in November 2023 (with sales of associated with that new product line of approximately $1,635,000 and $465,000 for the years ended December 31, 2024 and 2023, respectively). The year over year change in product sales also included lesser impacts as a result of: reduced sales following the closure of our Ballard, Washington retail location in late March 2023 (which generated almost a full quarter of retail tasting room revenue in early 2023); offset by increased sales as a result of our acquisition of