Company: IPST
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001641172-25-009684
Chunk: 209

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-12
Form: 424B3
Chunk 209
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. As of December 31, 2024 and December 31, 2023, the Company had customers that individually represented 10% or more of the Company’s accounts receivable. There were two and two individual customers that together represented 77% and 71% of total accounts receivable, as of December 31, 2024 and December 31, 2023, respectively. There were five and four individual customer accounts that together represented 80% and 64% of total revenue for the years ended December 31, 2024 and 2023, respectively. There were two and three individual suppliers that together represented 34% and 48% of total accounts payable, as of December 31, 2024 and December 31, 2023, respectively.

Concentration of Revenues

SCHEDULE OF CONCENTRATION OF RISK

|                                |     |                              2024 |    |   |     | 2023 |    |   |
|                                |     | For the Years Ended  December 31, |    |   |     |      |    |   |
|                                |     |                              2024 |    |   |     | 2023 |    |   |
| Customer A                     |     |                                   | 23 | % |     |      | 11 | % |
| Customer B                     |     |                                   | 10 | % |     |      | 10 | % |
| Customer C                     |     |                                   | 10 | % |     |      | 17 | % |
| Customer D                     |     |                                   | 11 | % |     |      |  — | % |
| Customer E                     |     |                                   | 25 | % |     |      |  — | % |
| Customer F                     |     |                                   |  — | % |     |      | 27 | % |
| Concentration risk, percentage |     |                                   | 79 | % |     |      | 65 | % |

Accounts receivable— Accounts receivable are reported at net realizable value. Receivables consist of amounts due from distributors. In evaluating the collectability of individual receivable balances, the Company considers several factors, including the age of the balance, the customers’ historical payment history, its credit worthiness and economic trends. There was no allowance for credit losses as of December 31, 2024 and 2023.

Inventories— Inventories are stated at the