Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 294

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 294
---
 for distinct value-added services that the Company provides to third parties, which may include production, bottling, marketing consulting and other services aimed at growing and improving brands and sales. Revenue is billed monthly and earned and recognized over-time as the agreed upon services are completed. The Company recorded $1,787,555 and $2,834,742 in service revenue in the consolidated statements of operations for the years ended December 31, 2024 and 2023, respectively. There is no contractually committed service revenue 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:

SCHEDULE OF REVENUE DISAGGREGATED BY SALES

|                          |     | For the Years Ended  December 31, 
 2024                              |      2024 |     | 2023 |      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 levied at the time