Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 45

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 receivable to be commercially reasonable and believes that such concentration does not result in the significant risk of near-term severe adverse impacts. As of September 30, 2025 and December 31, 2024, the Heritage Distilling Segment had customers that individually represented 10% or more of its accounts receivable. There were three and two individual customers that together represented 86% and 77% of total accounts receivable, as of September 30, 2025 and December 31, 2024, respectively. There were four and five individual customer accounts that together represented 90% and 83% of total products and distillery services revenue for the three months ended September 30, 2025 and 2024, respectively. There were five and three individual customer accounts that together represented 83% and 64% of total products and distillery services revenue for the nine months ended September 30, 2025 and 2024, respectively. There were three and two individual suppliers that represented 44% and 34% of total accounts payable, as of September 30, 2025 and December 31, 2024, respectively. Concentration of Revenues - Heritage Distilling SegmentThree Months Ended September 30,Nine Months Ended September 30,2025202420252024Customer A10 %24 %24 %35 %Customer B41 %17 %27 %13 %Customer C27 %17 %17 %16 %Customer D— %14 %10 %— %Customer E12 %11 %12 %— %90 %83 %90 %64 %With the addition of the $IP Token validator revenues commencing in September 2025, the Company does not expect that any of these customers will account for 10% or more of the Company’s accounts receivable in the future.Accounts receivable — Accounts receivable are reported at net realizable value. Receivables consist of amounts due from distributors. In evaluating the collectability of individual receivable balances, the Company considers several factors, including the age of the balance, the customers’ historical payment history, its credit worthiness and economic trends. There was no allowance for credit losses as of September 30, 2025 and December 31, 2024.Inventories — Inventories are stated at the lower of cost or net realizable value, with cost being determined under the weighted average