Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 228

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 228
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 deferred revenues of $ 95,610and $ 100,099, respectively, included in other current liabilities within the consolidated balance sheets. These performance obligations are expected to be satisfied within one year.

Service revenue— Represents fees for distinct value-added services that the Company provides to third parties, which may include production, bottling, marketing consulting and other services aimed at growing and improving brands and sales. Revenue is billed monthly and earned and recognized over-time as the agreed upon services are completed. The Company recorded $ 253,928and $ 474,336in service revenue in the condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, respectively. There is no contractually committed service revenue that would give rise to an unsatisfied performance obligation at the end of each reporting period.

The following table presents revenue disaggregated by sales channel:

SCHEDULE OF REVENUE DISAGGREGATED BY SALES

|                          |     | For                          
 the Three Months Ended March 
 31,                          
 2025                         |      2025 |     | 2024 |      2024 |
|:-------------------------|:----|:-----------------------------|----------:|:----|:-----|----------:|
| Direct to Consumer       |     | $                            |   568,714 |     | $    |   742,443 |
| Wholesale                |     |                              |   269,341 |     |      |   318,157 |
| Third Party              |     |                              |         — |     |      |   171,223 |
| Total Products Net Sales |     |                              |   838,055 |     |      | 1,231,823 |
| Services                 |     |                              |   253,928 |     |      |   474,336 |
| Total                    
 Net Sales                |     | $                            | 1,091,983 |     | $    | 1,706,159 |

Substantially all revenue is recognized from sales of goods or services transferred when contract performance obligations are met. As such, the accompanying condensed consolidated financial statements present financial information in a format which does not further disaggregate revenue, as there are no significant variations in economic factors affecting the nature, amount, timing, and uncertainty of cash flows.

Excise taxes— Excise taxes are levied on alcoholic beverages by governmental agencies. For imported alcoholic beverages, excise taxes are levied at the time of removal from