Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 118

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 118
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 approximately $520,000, or 70%, period over period, and included:

Total Gross ProfitThree Months Ended June 30,(rounded to $000’s)Change20252024Products$(24,000)$343,000 $(367,000)Services249,000 402,000 (153,000) $225,000 $745,000 $(520,000)

52

Total Gross MarginThree Months Ended June 30,(rounded to $000’s)Change20252024Products(2.3)%23.7 %(26.0)%Services95.4 %100.8 %(5.3)% 17.0 %40.4 %(23.4)%

It is important to note that the approximately $(24,000) in Products Gross Profits, and the resulting low Gross Margin of (2.3)%,is after layering in the approximately $607,000 in unabsorbed overhead costs. 

Gross Profit - Analysis of Exclusion of Unabsorbed Overhead

To provide a more detailed view to our performance for products and services based purely on the direct input costs we remove unabsorbed overhead expenses for the following analysis. Gross profit excluding unabsorbed overhead was approximately $583,000 and $854,000 for the three months ended June 30, 2025 and 2024, respectively, a decrease of approximately $271,000, or 31.7%, period over period, and included:

Three Months Ended June 30,(rounded to $000’s)Total Gross Profit - Excluding Unabsorbed Overhead20252024ChangeProducts$(24,000)$343,000 $(367,000)Add Back: Unabsorbed Overhead607,000 511,000 96,000      Products Gross Profit Excluding Unabsorbed Overhead583,000 854,000 (271,000)Services249,000 402,000 (153,000)     Total Gross Profit Excluding Unabsorbed Overhead$832,000 $1,256,000 $(424,000)

Three Months Ended June 30,(rounded to $000’s)Total Gross Margin - Excluding Unabsorbed Overhead20252024ChangeProducts(2.3)%23.7 %(26.0)%Add Back: Unabsorbed Overhead57.3 %35.4 %21.9