Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 124

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 124
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:--|:---------|:--|
| Products |                     | $                   | 3,429,000 |     | $ | 3,460,000 |     | $ | (31,000  | ) |
| Services |                     |                     |    95,000 |     |   |   675,000 |     |   | (580,000 | ) |
|          |                     | $                   | 3,524,000 |     | $ | 4,135,000 |     | $ | (611,000 | ) |

The approximately $31,000 decrease in net products cost of sales period
over period included: a decrease in product cost of approximately $135,000 to approximately $1,775,000 for the nine months ended
September 30, 2024, from approximately $1,910,000 for the nine months ended September 30, 2023 and an increase in unabsorbed overhead
of approximately $104,000 to approximately $1,654,000 as of September 30, 2024 from approximately $1,550,000 as of September 30, 2023.
We began analyzing unabsorbed overhead as a separate component of cost of sales in 2022.

|                               | Components of Products Cost of Sales | Nine Months Ended   
 September 30,       
 (rounded to $000’s) |      2024 |     |   |      2023 |     |   |   Change |   |
|:------------------------------|:-------------------------------------|:--------------------|----------:|:----|:--|----------:|:----|:--|---------:|:--|
| Product Cost (from inventory) |                                      | $                   | 1,775,000 |     | $ | 1,910,000 |     | $ | (135,000 | ) |
| Overhead – Unabsorbed         |                                      |                     | 1,654,000 |     |   | 1,550,000 |     |   |  104,000 |   |
|                               |                                      | $                   | 3,429,000 |     | $ | 3,460,000 |     | $ |  (31,000 | ) |

|                                      |     | Nine Months Ended 
     September 30, |       |   |     |      |       |   |     |        |      |    |
| Components of Products Cost of