Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 252

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 252
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 rise to an unsatisfied performance obligation at the end of each reporting period.

<div align='center'>F-13

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)</div>

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

The following table presents revenue disaggregated by sales channel:

|                    |     | For                   
 the Nine Months Ended 
 September 30,         |      2024 |     |   |      2023 |
|:-------------------|:----|:----------------------|----------:|:----|:--|----------:|
| Direct to Consumer |     | $                     | 2,526,301 |     | $ | 1,838,694 |
| Wholesale          |     |                       | 1,299,067 |     |   | 1,305,940 |
| Third              
 Party              |     |                       |   225,719 |     |   |   228,301 |
| Total              
 Products Net Sales |     |                       | 4,051,087 |     |   | 3,372,935 |
| Services           |     |                       | 1,258,820 |     |   | 2,152,449 |
| Total              
 Net Sales          |     | $                     | 5,309,907 |     | $ | 5,525,384 |

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 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 $144,711 and $142,026 for