Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 220

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 220
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 each totaling less than $ 250,000. This makes the Company’s funds eligible for FDIC insurance protection each day. The funds are then swept back into the Company’s account at the beginning of the next business day. The aggregate limit that can be protected for the Company under this program is approximately $ 150million.

The Company considers the concentration of credit risk associated with its accounts receivable to be commercially reasonable and believes that such concentration does not result in the significant risk of near-term severe adverse impacts. As of September 30, 2024 and December 31, 2023, the Company had customers that individually represented 10% or more of the Company’s accounts receivable. There were three and two individual customers that together represented 70% and 71% of total accounts receivable, as of September 30, 2024 and December 31, 2023, respectively. There were two and three individual customer accounts that together represented 48% and 58% of total revenue for the nine months ended September 30, 2024 and 2023, respectively. There were three and three individual suppliers that together represented 40% and 48% of total accounts payable, as of September 30, 2024 and December 31, 2023, respectively.

Concentration of Revenues

|          |     |          Nine 
  Months Ended 
 September 30, |    |   |     |      |    |   |
|          |     |          2024 |    |   |     | 2023 |    |   |
| Customer 
 A        |     |               | 35 | % |     |      |    |   |
| Customer 
 B        |     |               | 13 | % |     |      | 11 | % |
| Customer 
 C        |     |               |    |   |     |      | 18 | % |
| Customer 
 D        |     |               |    |   |     |      | 29 | % |
|          |     |               | 48 | % |     |      | 58 | % |

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 noallowance for credit losses to reflect