Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 303

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 303
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 or who have a plan to use the product in the future once the spirits are finished aging. Third Party Barreled Spirits are paid with a deposit up front, with the remainder billed at the time of completion when the finished spirits are then produced and supplied to the customer. In most cases, the barrels are stored during aging for the customer at a fee. As of December 31, 2023 and 2022, the Company had deferred revenues of $ 1,039,863and $ 244,248, 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 $ 2,834,742and $ 3,080,884in service revenue in the consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. There is no contractually committed service revenue that would give rise to an unsatisfied performance obligation at the end of each reporting period. F-55 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

|                          |     | For the Years Ended 
 December 31,        |      2023 |     |   |      2022 |
|:-------------------------|:----|:--------------------|----------:|:----|:--|----------:|
| Direct to Consumer       |     | $                   | 3,183,664 |     | $ | 3,473,326 |
| Wholesale                |     |                     | 1,657,851 |     |   | 1,643,356 |
| Third Party              |     |                     |   294,967 |     |   |   112,000 |
| Total Products Net Sales |     |                     | 5,136,482 |     |   | 5,228,682 |
| Services                 |     |                     | 2,834,742 |     |   | 3,080,884 |
| Total Net Sales          |     | $                   | 7,971,224 |     | $ | 8,309,566 |

Substant