Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 158

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 158
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 our overhead expenses will be more fully allocated to increased levels of production. (See below our discussion on Gross Margins related to unabsorbed overhead in Non -GAAP Financial Measures). •Cost of Products Sales includes approximately $211,000 in product inventory write downs and adjustments in 2024 compared to a positive inventory adjustment of approximately $21,000 in 2023. Gross Profit Gross profit was approximately $2,126,000 and $2,151,000 for the years ended December 31, 2024 and 2023, respectively, a decrease of approximately $25,000, or 1.2%, period over period, and included:

| Total Gross Profit 
 2024               |     | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |    Change |     |   |          |   |
|:-------------------|:----|:-------------------------|----------:|:----|:--|----------:|:----|:--|---------:|:--|
| Products           |     | $                        |   442,000 |     | $ |   173,000 |     | $ |  269,000 |   |
| Services           |     |                          | 1,684,000 |     |   | 1,978,000 |     |   | (294,000 | ) |
|                    |     | $                        | 2,126,000 |     | $ | 2,151,000 |     | $ |  (25,000 | ) |

| Total Gross Margin |     | Years Ended December 31, |      |     |      |        |     |      |    |
| 2024               |     |                          | 2023 |     |      | Change |     |      |    |
| Products           |     |                      6.7 |    % |     |  3.4 | %      |     |  3.3 | %  |
| Services           |     |                     94.2 |    % |     | 69.8 | %      |     | 24.5 | %  |
|                    |     |                     25.3 |    % |     | 27.0 | %      |     | (1.7 | )% |

| Total Sales 
 2024        |     | Years Ended December 31, 
 (rounded