Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024441
Chunk: 95

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 95
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 included is the result of the timing of orders fulfilled through the DtC retailer channel, which   
 consisted of large load in by the retailers in the fourth quarter 2024, modest reorders in the first quarter 2025 as the retailers      
 moved through their inventory and the movement of reorders into second quarter 2025 that occurred in first quarter 2024 for DtC items.  
 A portion of the reduction in retail revenue in six months ended June 30, 2025 versus 2024 was also from the reduction of hours in      
 some of our brick and mortar retail locations as we made the decision to close some locations on Mondays and Tuesday to reduce labor    
 expenses on our slowest retail sales days during the quarter. During the same period in 2024 our retail locations were open seven       
 days per week. We plan to reopen those locations on Mondays and Tuesdays as we get closer to the Memorial Day holiday to take advantage 
 of higher summer foot traffic.                                                                                                          |
| ● | The                                                                                                                                     
 approximately $187,000 decrease in third-party products sales was primarily a result of winding down our contracts on producing bulk    
 whiskey for third parties in 2024 as we continue to shift our focus and resources into higher margin activities.                        |

Online DtC Product Sales from our online distributor’s inventory sold retailers for resale to retail customers for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 reflected the Company’s increased focus on high-margin direct to consumer (“DtC”) and online sales period over period. The tables below report the substantial increase in the retail value of DtC products sold to consumers during the six months ended June 30, 2025 versus 2024 (sales from our online distributor’s inventory) as follows (in dollars and units sold):

| 57 |

The approximately $358,000 decrease in net sales of services period over period included:

| Services Sales         |     | Six                                       
 Months Ended June 30, (rounded to $000’s) 
 2025                                      |         |     |   |    2024 |     |   | Change   |   |
|:-----------------------|:----|:------------------------------------------|--------:|:----|:--|--------:|:----|:--|:---------|:--|
| Third Party Production |     | $                                         |  14,000 |     | $ | 117,000 |     | $ | (103,000 |