Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 109

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 109
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 all brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points and with similar profit margins. In the IP Strategy Segment, the Company’s $IP Token investments are maintained and managed to make a return on investment through validation and staking activities to generate revenue. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses performance for each segment based on revenue and gross profit, which are reported in the condensed consolidated statement of operations. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The accounting policies for segment reporting are the same as for the Company’s consolidated financial statements. As the Company continues its operations of the $IP treasury strategy, it may provide additional data points to the CODM to assist with decision making that will be evaluated for inclusion in the Company's reportable segment disclosureThe following summarizes the Company’s operations by segment. There were no IP Strategy Segment activities prior to the three months ended September 30, 2025.

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)NOTE 15 — SEGMENT REPORTING (cont.)

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Heritage Distilling SegmentRevenue(a)$1,080,457 $1,761,434 $3,494,262 $5,309,907 Cost of Revenue1,103,656 1,131,691 3,018,488 3,523,831 Gross Profit(23,199)629,743 475,774 1,786,076 IP Strategy SegmentRevenue(b)1,908,544 — 1,908,544 — Cost of Revenue53,342 — 53,342 — Gross Profit1,855,202 — 1,855,202 — Total Revenue2,989,001 1,761,434 5,402,806 5,309,907 Cost of Revenue1,156,998 1,131,691 3,071,830 3,523,831 Gross Profit$1,832,003 $629,743 $2,330,976 $1,