Company: IPST
Filing Date: 2025-05-21
Form Type: 424B3
Source: 0001641172-25-011934
Chunk: 85

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-21
Form: 424B3
Chunk 85
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 reducing general overhead costs are geared toward reducing our overhead expenses to have our remaining overhead right-sized to our strategy of focusing on producing and selling high margin super premium items. (See below for our discussion on Gross Margins related to unabsorbed overhead in Non-GAAP Financial Measures ). Unabsorbed overhead includes approximately $2,000 in product inventory write downs and adjustments in the three months ended March 31, 2025 compared to approximately $79,000 in the three months ended March 31, 2024.

Gross Profit

Gross profit was approximately $272,000 and $409,000 for the three months ended March 31, 2025 and 2024, respectively, a decrease of approximately $137,000, or 33.5%, period over period, and included:

| Total        
 Gross Profit 
 2025         |     | Three        
 Months Ended 
 March        
 31,          
 (rounded     
 to $000’s)   
 2024         |         |     |   |         |     | Change |          |
|:-------------|:----|:-------------|--------:|:----|:--|--------:|:----|:-------|---------:|
| Products     |     | $            |  24,000 |     | $ |  19,000 |     | $      |    5,000 |
| Services     |     |              | 248,000 |     |   | 390,000 |     |        | -142,000 |
|              |     | $            | 272,000 |     | $ | 409,000 |     | $      | -137,000 |

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Table of Contents

| Total        
 Gross Margin |     |        Three 
 Months Ended 
        March 
          31, 
     (rounded 
   to $000’s) |      |   |     |      |   |     | Change |      |   |
| 2025         |     |         2024 |      |   |     |      |   |     |        |      |   |
| Products     |     |              |  2.8 | % |     |  1.5 | % |     |        |  1.3 | % |
| Services     |     |              | 97.7 | % |     | 82.3 | % |     |        | 15.