Company: IPST
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001788230-25-000062
Chunk: 245

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 245
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 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 three months ended March 31, 2025 compared to the three months ended March 31, 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 three months ended March 31, 2025 versus 2024 (sales from our online distributor’s inventory) as follows (in dollars and units sold):

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Three Months Ended March 31, (rounded to $000’s)Products Sales - DtC and online20252024Change% IncreaseSalute Series and Military DtC Spirits$426,000 $241,000 $185,000 76.8%Other HDC DtC Spirits13,000 7,000 6,000 85.7%$439,000 $248,000 $191,000 77.0%Three Months Ended March 31, (Units)Products Sales - DtC and online20252024Change% IncreaseSalute Series and Military DtC Spirits4,253 2,047 2,206 107.8 %Other HDC DtC Spirits317 225 92 40.9 %4,570 2,272 2,298 101.1 %

•The difference in Salute Series and Military DtC Spirits growth of 107.8% for units sold of 107.8% year over year versus the 76.8% increase in revenue for those same products is the result of us release more bottle only products at $95 per unit during the three months ended March 31, 2025 versus 2024. In the first quarter 2024 we were primarily selling the Army SOF in tube for $125 at retail, whereas during the same time period in 2025 we had a broader selection of spirits under the Salute Series banner, with more units selling for $95.

•Since the launch of the Army SOF version in late October 2023, sales of our of Salute Series products directly to consumers in our tasting rooms and online, has increased approximately $185,000 to approximately $426,000 for the three months ended March 31, 2025 compared to approximately