Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 144

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 144
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 time while we transition from low margin, but high volume production to higher margin products.

82

Services cost of sales decreased by approximately $49,000 to approximately $46,000 for the nine months ended September 30, 2025 from approximately $95,000 for the nine months ended September 30, 2024 primarily resulting from our ending a low -marginthird party production contract for another brand and the wind down of barrel production for third parties.

| Components of Products Cost of Sales – Spirits Business 
 2025                                                    |     | Nine Months Ended   
 September 30,       
 (rounded to $000’s) |      2024 |     |   |           |     | Change |          |   |
|:--------------------------------------------------------|:----|:--------------------|----------:|:----|:--|----------:|:----|:-------|---------:|:--|
| Product Cost (from inventory)                           |     | $                   | 1,176,000 |     | $ | 1,775,000 |     | $      | (599,000 | ) |
| Overhead – Unabsorbed                                   |     |                     | 1,796,000 |     |   | 1,654,000 |     |        |  142,000 |   |
|                                                         |     | $                   | 2,972,000 |     | $ | 3,429,000 |     | $      | (457,000 | ) |

| Components of Products Cost of Sales – Spirits Business |     | Nine Months Ended 
     September 30, |      |     |       |   |     | Change |    |
| 2025                                                    |     |                   | 2024 |     |       |   |     |        |    |
| Product Cost (from inventory)                           |     |              39.6 |    % |     |  51.8 | % |     |  (12.2 | )% |
| Overhead – Unabsorbed                                   |     |              60.4 |    % |     |  48.2 | % |     |   12.2 | %  |
|                                                         |     |             100.0 |    % |     | 100.0 | % |     |      — | %  |

•Unabsorbed overhead as a component of Product Cost of 60.4% and 48.2% for the nine