Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 358

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 358
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 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:

|                          |     | For the Years Ended 
 December 31,        |      2024 |     |   |      2023 |
|:-------------------------|:----|:--------------------|----------:|:----|:--|----------:|
| Direct to Consumer       |     | $                   | 3,899,493 |     | $ | 3,183,664 |
| Wholesale                |     |                     | 1,595,553 |     |   | 1,657,851 |
| Third Party              |     |                     | 1,119,887 |     |   |   294,967 |
| Total Products Net Sales |     |                     | 6,614,933 |     |   | 5,136,482 |
| Services                 |     |                     | 1,787,555 |     |   | 2,834,742 |
| Total Net Sales          |     | $                   | 8,402,488 |     | $ | 7,971,224 |

Substantially all revenue is recognized from sales of goods or services transferred when contract performance obligations are met. As such, the accompanying 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 the port of entry and are payable to the U.S. Customs and Boarder Protection (the “CBP”). For domestically produced alcoholic beverages, excise taxes are

F-64 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) levied at the time of removal from a bonded production site and are payable to the Alcohol and Tobacco Tax and Trade Bureau (the “TTB”). These taxes are not collected from customers but are instead the responsibilities of the Company. The Company’s accounting policy is to include excise taxes in “Cost of Sales” within the consolidated statements of operations, which totaled $232,073 and $230,230 for the years ended December 31, 2024 and 2023, respectively