Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 105

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 105
---
 Compensation |     | $                           | 4,892,000 |     | $ | 19,000 |     | $ | 4,873,000 |

Netting out the non-cash share-based compensation from the Total Operating Expenses results in cash based Operating Expenses for 2024 of $12,177,858 for 2024, which is $1,237,742 less than the Operating Expenses for 2023.

Net Sales

Net sales were approximately $8,402,000 and $7,971,000 for the years ended December 31, 2024 and 2023, respectively, an increase of approximately $431,000, or 5.4%, period over period. The increase in net sales resulted primarily from:

| ● | an                                                                                              
 increase in product sales of approximately $1,479,000, or 28.8%, to approximately $6,615,000    
 for the year ended December 31, 2024, compared to approximately $5,136,000 for the year ended   
 December 31, 2023, due mainly to the launch of the Special Operations Services product          
 line in November 2023 (with sales of associated with that new product line of approximately     
 $1,635,000 and $465,000 for the years ended December 31, 2024 and 2023, respectively). The      
 year over year change in product sales also included lesser impacts as a result of: reduced     
 sales following the closure of our Ballard, Washington retail location in late March 2023       
 (which generated almost a full quarter of retail tasting room revenue in early 2023); offset    
 by increased sales as a result of our acquisition of Thinking Tree Spirits (“TTS”)              
 in February 2024 (and the resulting increase from sales of TTS products and revenue from        
 the acquired TTS tasting room in Eugene, Oregon),                                               |
| ● | a                                                                                               
 decrease of approximately $1,048,000, or 37.0%, in services sales, to approximately $1,787,000  
 for the year ended December 31, 2024 compared to approximately $2,835,000 for the year ended    
 December 31, 2023 resulting primarily from the termination of a low-margin third-party contract 
 in January 2024.                                                                                |

We note that total sales for the year ended December 31, 2024 would have been higher than total sales in the year ended December 31,