Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 143

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 143
---
 purposes have been rounded individually. As a result, totals may reflect the effect of differences between: aggregating the individually rounded component numbers; and the rounding of the total of the individual (non-rounded) component numbers. In cases where rounding occurred, the amount of the rounding difference is generally $1,000 or less. Such differences are considered to be insignificant. 

67

The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024.

For the Nine Months EndedSeptember 30,20252024ChangeNet RevenueProducts$2,714,012 $4,051,087 $(1,337,075)Services780,250 1,258,820 (478,570)Crypto and Related1,908,544— 1,908,544Total Net Revenue5,402,806 5,309,907 92,899 Cost of RevenueProducts2,972,030 3,428,979 (456,949)Services46,458 94,852 (48,394)Crypto and Related53,342 — 53,342      Total Cost of Revenue3,071,830 3,523,831 (452,001)     Total Gross Profit2,330,976 1,786,076 544,900 Operating ExpensesSales and Marketing4,311,244 3,758,713 552,531 General and Administrative8,268,702 4,632,016 3,636,686 Total Operating Expenses12,579,946 8,390,729 4,189,217 Operating Loss(10,248,970)(6,604,653)(3,644,317)Other Income (Expense)Interest Expense(1,616,498)(1,897,299)280,801 Change in Fair Value of Intangible Digital Assets245,841,410 — 245,841,410 Gain on Investment— 3,421,222 (3,421,222)Gain on Extinguishment of Debt1,673,127—1,673,127 Change in Fair Value of Convertible Notes— 8,324,198 (8,324,198)Change in Fair Value of Warrant Liabilities— 1,734,308 (1,734,308)Change in Fair Value of Contingency Liability(62,424)457,127