Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 223

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 223
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 31, 2025 and 2024 were $4,049 and $18,106, respectively.

Third Party— The Company produced and sold barreled spirits to Third Party customers who either hold them for investment or who have a plan to use the product in the future once the spirits are finished aging. Third Party Barreled Spirits were paid with a deposit up front, with the remainder billed at the time of completion when the finished spirits were produced and supplied to the customer. In most cases, the barrels are stored during aging for the customer at a fee. As of March 31, 2025 and December 31, 2024, the Company had deferred revenues of $95,610 and $100,099, respectively, included in other current liabilities within the consolidated balance sheets. These performance obligations are expected to be satisfied within one year.

Service revenue— Represents fees for distinct value-added services that the Company provides to third parties, which may include production, bottling, marketing consulting and other services aimed at growing and improving brands and sales. Revenue is billed monthly and earned and recognized over-time as the agreed upon services are completed. The Company recorded $253,928 and $474,336 in service revenue in the condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, respectively. There is no contractually committed service revenue that would give rise to an unsatisfied performance obligation at the end of each reporting period.

The following table presents revenue disaggregated by sales channel:

SCHEDULE OF REVENUE DISAGGREGATED BY SALES

|                          |     | For                          
 the Three Months Ended March 
 31,                          
 2025                         |      2025 |     | 2024 |      2024 |
|:-------------------------|:----|:-----------------------------|----------:|:----|:-----|----------:|
| Direct to Consumer       |     | $                            |   568,714 |     | $    |   742,443 |
| Wholesale                |     |                              |   269,341 |     |      |   318,157 |
| Third Party              |     |                              |         — |     |      |   171,223 |
| Total Products Net Sales |     |                              |   838,055 |     |      | 1,231,823 |
| Services                 |     |                              |   253,928 |     |      |   474,336