Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 312

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 312
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 profit excluding unabsorbed overhead was 

60

approximately $1,045,000 and $1,537,000 for the six months ended June 30, 2025 and 2024, respectively, a decrease of approximately $492,000, or 32.0%, period over period, and included:

Six Months Ended June 30,(rounded to $000’s)Total Gross Profit - Excluding Unabsorbed Overhead20252024ChangeProducts$2,000 $365,000 $(363,000)Add Back: Unabsorbed Overhead1,043,000 1,172,000 (129,000)     Products Gross Profit Excluding Unabsorbed Overhead1,045,000 1,537,000 (492,000)Services497,000 792,000 (295,000)     Total Gross Profit Excluding Unabsorbed Overhead$1,542,000 $2,329,000 $(787,000)

Six Months Ended June 30,(rounded to $000’s)Total Gross Margin - Excluding Unabsorbed Overhead20252024ChangeProducts0.1 %13.6 %(13.5)%Add Back: Unabsorbed Overhead54.9 %43.8 %11.1 %     Products Gross Margin Excluding Unabsorbed Overhead55.0 %57.4 %(2.4)%Services96.5 %90.7 %5.8 %     Total Gross Margin Excluding Unabsorbed Overhead63.9 %65.6 %(1.7)%

Gross Margin excluding unabsorbed overhead of 63.9% for the six months ended June 30, 2025 compared to 65.6% for the same period in 2024 is a significant increase, as is the improvement compared to the 55.6% we reported for the full year 2024, indicating our efforts aimed at reducing overhead expenses and focusing on high margin items are starting to bear fruit.

Gross Profit Analysis

Gross Margin numbers above are based on the total sales for the six months ended June 30, 2025 and 2024 as follows:

Total SalesSix Months Ended June 30,(rounded to $000’s)Change20252024Products$1,899,000 $2,676,000 $(777