Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 108

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 108
---
4 and 2023, respectively, included non-cash share-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)                   |      2024 |     |   |   2023 |     |   |    Change |
|:-----------------------------------------------|:----|:-----------------------------|----------:|:----|:--|-------:|:----|:--|----------:|
| Production / Cost of Sales                     |     | $                            |   178,000 |     | $ |      — |     | $ |   178,000 |
| Sales and Marketing                            |     |                              |   730,000 |     |   |      — |     |   |   730,000 |
| General and Administrative                     |     |                              | 2,414,000 |     |   |  6,000 |     |   | 2,408,000 |
| Subtotal Employee Compensation                 |     |                              | 3,322,000 |     |   |  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,