Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 155

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 155
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 we made the choice to focus our time, energy and resources on higher margin activities. Lesser amounts of revenue in this category in 2024 came from contract bottling services; and third -partybarrel sales and storage revenues. •The approximately $55,000 increase in retail services included Cask Club sales increasing $29,000 and Cocktail/Tasting orders in the tasting rooms increasing $30,000. •The approximately $108,000 decrease in consulting fees is related to TBN projects as we saw the successful completion and opening of the Stillaguamish project in October 2024 and we moved the announced Coquille and Tonto Apache projects that were in planning phase into construction phase in preparation for openings in late 2025. Cost of Sales Cost of sales were approximately $6,276,000 and $5,820,000 for the years ended December 31, 2024 and 2023, respectively, an increase of approximately $456,000, or 7.8%, period over period.

| Total Cost of Sales 
 2024                |     | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |    Change |     |   |           |   |
|:--------------------|:----|:-------------------------|----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Products            |     | $                        | 6,173,000 |     | $ | 4,963,000 |     | $ | 1,210,000 |   |
| Services            |     |                          |   103,000 |     |   |   857,000 |     |   |  (754,000 | ) |
|                     |     | $                        | 6,276,000 |     | $ | 5,820,000 |     | $ |   456,000 |   |

The approximately $1,210,000 increase in net products cost of sales period over period included: an increase in product cost of approximately $875,000 to approximately $3,623,000 for the year ended December 31, 2024, from approximately $2,748,000 for the year ended December 31, 2023 which included an increase in unabsorbed overhead of approximately $335,000 to approximately $2,550,000 as of December 31, 2024 from approximately $