Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 104

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 104
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1.3 | % |
| Products Gross Margin Excluding Unabsorbed Overhead |     |                     | 57.9 | % |     |      | 55.3 | % |     |        |  2.6 | % |
| Services                                            |     |                     | 97.7 | % |     |      | 82.3 | % |     |        | 15.4 | % |
| Total Gross Margin Excluding                        
 Unabsorbed Overhead                                 |     |                     | 67.1 | % |     |      | 62.8 | % |     |        |  4.3 | % |

Gross Margin excluding unabsorbed overhead of 67.1% for the three months ended March 31, 2025 compared to 62.8% for the same period in 2024 is a significant increase, as is the improvement compared to the 55.6% we reported for the full year 2024, indicating our efforts aimed at reducing overhead expenses and focusing on high margin items are starting to bear fruit.

| 66 |

Gross Profit Analysis

Gross Margin numbers above are based on the total sales for the three months ended March 31, 2025 and 2024 as follows:

|          | Total Sales | Three               
 Months Ended  March 
 31,  (rounded       
 to $000’s)          |      2025 |     |   |      2024 |     |   | Change   |   |
|:---------|:------------|:--------------------|----------:|:----|:--|----------:|:----|:--|:---------|:--|
| Products |             | $                   |   838,000 |     | $ | 1,232,000 |     | $ | (394,000 | ) |
| Services |             |                     |   254,000 |     |   |   474,000 |     |   | (220,000 | ) |
|          |             | $                   | 1,092,000 |     | $ | 1,706,000 |     | $ | (614,000 | ) |

| ● | Gross                                                                                           
 margin was approximately 24.9% and 24.0% (67.1% and 62.8%, excluding unabsorbed overhead)       
 for the three months ended March 31, 2025 and 202