Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 210

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 210
---
 four individual customer accounts that together represented 80% and 64% of total revenue for the years ended December 31, 2024 and 2023, respectively. There were two and three individual suppliers that together represented 34% and 48% of total accounts payable, as of December 31, 2024 and December 31, 2023, respectively.

Concentration of Revenues

SCHEDULE OF CONCENTRATION OF RISK

|                                |     |                              2024 |    |   |     | 2023 |    |   |
|                                |     | For the Years Ended  December 31, |    |   |     |      |    |   |
|                                |     |                              2024 |    |   |     | 2023 |    |   |
| Customer A                     |     |                                   | 23 | % |     |      | 11 | % |
| Customer B                     |     |                                   | 10 | % |     |      | 10 | % |
| Customer C                     |     |                                   | 10 | % |     |      | 17 | % |
| Customer D                     |     |                                   | 11 | % |     |      |  — | % |
| Customer E                     |     |                                   | 25 | % |     |      |  — | % |
| Customer F                     |     |                                   |  — | % |     |      | 27 | % |
| Concentration risk, percentage |     |                                   | 79 | % |     |      | 65 | % |

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 noallowance for credit losses as of December 31, 2024 and 2023.

Inventories— Inventories are stated at the lower of cost or net realizable value, with cost being determined under the weighted average method, and consist of raw materials, work-in-process, and finished goods. Costs associated with spirit production and other costs related to manufacturing of products for sale, are recorded as inventory. Work-in-process inventory is comprised of all accumulated costs of raw materials, direct labor, and manufacturing overhead to the respective stage of production. Finished goods and raw