Company: IPST
Filing Date: 2025-05-21
Form Type: 424B3
Source: 0001641172-25-011934
Chunk: 87

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-21
Form: 424B3
Chunk 87
---
 31, 2024. As we work to shed some of our excess capacity and overhead, and as we increase our sales of higher margin items, we expect this Products gross margin to increase significantly ( See also below our comments related to this in more detail in Non-GAAP Financial Measures ).

Sales and Marketing Expenses

Sales and marketing expenses were approximately $1,315,000 for the three months ended March 31, 2025 compared to approximately $1,190,000 for the three months ended March 31, 2024. This approximately $125,000 increase included:

| Sales                          
 and Marketing Expense          
 2025                           |     | Three        
 Months Ended 
 March        
 31,          
 (rounded     
 to $000’s)   
 2024         |           |     |   |           |     | Change |         |
|:-------------------------------|:----|:-------------|----------:|:----|:--|----------:|:----|:-------|--------:|
| Personnel -                    
 Cash Wages and Related Expense |     | $            |   729,000 |     | $ |   645,000 |     | $      |  84,000 |
| Tasting                        
 Room                           |     |              |    22,000 |     |   |    34,000 |     |        | -12,000 |
| Leases                         
 and Rentals                    |     |              |   190,000 |     |   |   166,000 |     |        |  24,000 |
| Sales                          
 and Marketing Expenses         |     |              |   206,000 |     |   |    96,000 |     |        | 110,000 |
| Other                          |     |              |   168,000 |     |   |   249,000 |     |        | -81,000 |
|                                |     | $            | 1,315,000 |     | $ | 1,190,000 |     | $      | 125,000 |

• The approximately $84,000 increase in personnel expense was primarily a result of moving a full time employee into the Salute Series sales pipeline to drive more adoption and to grow the brand.

<div align='center'>53</div>

Table of Contents

• The approximately $110,000 increase in sales and marketing expenses included: an increase in digital advertising production expense to drive DtC sales of our highest margin spirits brands,