Company: IPST
Filing Date: 2025-05-21
Form Type: 424B3
Source: 0001641172-25-011934
Chunk: 80

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-21
Form: 424B3
Chunk 80
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 bottle only products at $95 per unit during the three months ended March 31, 2025 versus 2024. In the first quarter 2024 we were primarily selling the Army SOF in tube for $125 at retail, whereas during the same time period in 2025 we had a broader selection of spirits under the Salute Series banner, with more units selling for $95.

• Since the launch of the Army SOF version in late October 2023, sales of our of Salute Series products directly to consumers in our tasting rooms and online, has increased approximately $185,000 to approximately $426,000 for the three months ended March 31, 2025 compared to approximately $241,000 for the three months ended March 31, 2024.

The approximately $220,000 decrease in net sales of services period over period included:

| Services         
 Sales            
 2025             |     | Three        
 Months Ended 
 March        
 31,          
 (rounded     
 to $000’s)   
 2024         |         |     | Change |         |     |   |          |
|:-----------------|:----|:-------------|--------:|:----|:-------|--------:|:----|:--|---------:|
| Third            
 Party Production |     | $            |   6,000 |     | $      | 111,000 |     | $ | -105,000 |
| Retail           
 Services         |     |              | 239,000 |     |        | 300,000 |     |   |  -61,000 |
| Consulting       
 and Other        |     |              |   9,000 |     |        |  63,000 |     |   |  -54,000 |
|                  |     | $            | 254,000 |     | $      | 474,000 |     | $ | -220,000 |

• The approximately $105,000 decrease in third-party production resulted from the ending of a low-margin third-party bottling contract as of January 31, 2024. The bulk of our revenue in this category included production services revenue related to a contract we had to produce a gin for a large international spirit brand owner as we made the choice to focus our time, energy and resources on higher margin activities. Lesser amounts of revenue in this category in 2024 came from contract bottling services; and third-party barrel sales and storage revenues.

• The approximately $