Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 146

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 146
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 September30, 2024 are inclusive of low margin production contracts we ended in 2024, the significant amount of unabsorbed overhead we booked (which drags down gross margin based on the

85

amount of unused capacity in our system), and approximately $185,000 in product inventory write downs in the nine months ended September30, 2025 compared to approximately $102,000 in product inventory write downs and adjustments in the nine months ended September30, 2024. As we work to shed some of our excess capacity and overhead, and as we increase our sales of higher margin items, we expect this Products gross margin to increase significantly ( See also below our comments related to this in more detail in Non -GAAP Financial Measures). Gross Profit — Crypto and Related Business Gross profit was approximately $1,855,000 and $0 for the nine months ended September 30, 2025 and 2024, respectively, an increase of approximately $1,855,000, or 100%, period over period, and included:

| Total Gross Profit – Crypto and Related 
 2025                                    |     | Nine Months Ended 
 September 30,     |      2024 |     |   |   |     | Change |           |
|:----------------------------------------|:----|:------------------|----------:|:----|:--|:--|:----|:-------|----------:|
| Crypto and Related                      |     | $                 | 1,855,000 |     | $ | — |     | $      | 1,855,000 |
|                                         |     | $                 | 1,855,000 |     | $ | — |     | $      | 1,855,000 |

| Total Gross Margin – Crypto and Related |     | Nine Months Ended 
     September 30, |      |     |   |   |     | Change |   |
| 2025                                    |     |                   | 2024 |     |   |   |     |        |   |
| Crypto and Related                      |     |              97.2 |    % |     | — | % |     |   97.2 | % |
|                                         |     |              97.2 |    % |     | — | % |     |   97.2 | % |

It is important to note that there were no comparable cost of sales in 2024 as we began recognizing staking and validator revenues and incurring