Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 112

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 112
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. Lesser amounts of revenue in this category in 2024          
 came from contract bottling services; and third-party barrel sales and storage revenues.           |

| ● | The                                                                                           
 approximately $55,000 increase in retail services included Cask Club sales increasing $29,000 
 and Cocktail/Tasting orders in the tasting rooms increasing $30,000.                          |

| ● | The                                                                                            
 approximately $108,000 decrease in consulting fees is related to TBN projects as we saw the    
 successful completion and opening of the Stillaguamish project in October 2024 and we moved    
 the announced Coquille and Tonto Apache projects that were in planning phase into construction 
 phase in preparation for openings in late 2025.                                                |

Cost of Sales

Cost of sales were approximately $6,276,000 and $5,820,000 for the years ended December 31, 2024 and 2023, respectively, an increase of approximately $456,000, or 7.8%, period over period.

|          | Total         
 Cost of Sales | Years           
 Ended  December 
 31,  (rounded   
 to $000’s)      |      2024 |     |   |      2023 |     |   |    Change |   |
|:---------|:--------------|:----------------|----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Products |               | $               | 6,173,000 |     | $ | 4,963,000 |     | $ | 1,210,000 |   |
| Services |               |                 |   103,000 |     |   |   857,000 |     |   |  (754,000 | ) |
|          |               | $               | 6,276,000 |     | $ | 5,820,000 |     | $ |   456,000 |   |

The approximately $1,210,000 increase in net products cost of sales period over period included: an increase in product cost of approximately $875,000 to approximately $3,623,000 for the year ended December 31, 2024, from approximately $2,748,000 for the year ended December 31, 2023 which included an increase in unabsorbed overhead of approximately $335,000 to approximately $2,550,000 as of December 31, 2024 from