Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 124

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 124
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 2022, respectively, a decrease of approximately $277,000, or 4.5%, period over period. The reduction in cost of sales resulted primarily from an approximately $282,000 decrease in products cost of sales, to approximately $4,963,000 for the year ended December 31, 2023, compared approximately $5,245,000 for the year ended December 31, 2022.

|          | Total Cost of Sales | Years Ended  December 31, 
 (rounded to $000’s)       |      2023 |     |   |      2022 |     |   |   Change |   |
|:---------|:--------------------|:--------------------------|----------:|:----|:--|----------:|:----|:--|---------:|:--|
| Products |                     | $                         | 4,963,000 |     | $ | 5,245,000 |     | $ | (282,000 | ) |
| Services |                     |                           |   857,000 |     |   |   852,000 |     |   |    5,000 |   |
|          |                     | $                         | 5,820,000 |     | $ | 6,097,000 |     | $ | (277,000 | ) |

The approximately $282,000 decrease in net products cost of sales period over period included: an increase in product cost of approximately $191,000 to approximately $2,751,000 for the year ended 2023, from approximately $2,560,000 for the year ended 2022 and a decrease in unabsorbed overhead of approximately $473,000 to approximately $2,212,000 as of December 31, 2023 from approximately $2,685,000 as of December 31, 2022. We began analyzing unabsorbed overhead as a separate component of cost of sales in 2022.

|                               | Components of Products Cost of Sales | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |      2022 |     |   |   Change |   |
|:------------------------------|:-------------------------------------|:-------------------------|----------:|:----|:--|----------:|:----|:--|---------:|:--|
| Product Cost (from inventory) |                                      | $                        | 2,751