Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 123

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 123
---
:|:----|:--|----------:|:----|:--|---------:|:--|
| Wholesale   |                | $                        | 1,658,000 |     | $ | 1,643,000 |     | $ |   15,000 |   |
| Retail      |                |                          | 3,182,000 |     |   | 3,473,000 |     |   | (291,000 | ) |
| Third Party |                |                          |   295,000 |     |   |   112,000 |     |   |  183,000 |   |
|             |                | $                        | 5,135,000 |     | $ | 5,228,000 |     | $ |  (93,000 | ) |

| ● | The approximately $291,000 decrease in retail products sales                                                                     
 was primarily a result of the impact of increased revenues in 2022 resulting from a “blow out” sale of the remaining inventories 
 of our popular flavored bourbon product that utilized the original recipe in old packaging.                                      |

In addition, in 2022, we had access to outdoor retail zones where we could serve customers food and drinks. Those spaces were open in 2022 under emergency COVID-19 guidelines that ended in December 2022. The termination of the emergency guidelines reduced our seating capacity by about 40% in 2023 as we no longer had access to this expanded outdoor seating and the increased table space, which adversely affected our sales opportunities that came with that expanded space. Finally, as discussed above, we closed one of our six retail tasting rooms in mid-March 2023. Some associated refunds to customers associated with Cask Club membership fees in that closed location meant for a brief period in the second quarter of 2023 we had negative sales for that closed location because of refunds being issued with no additional revenue associated with the closed location. The approximately $183,000 increase in third party products sales was primarily a result of producing bulk spirits under contract for third parties and royalties from spirits sales under the new TBN model. The approximately $246,000 decrease in net sales of services period over period included:

|                        | Services Sales | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |      2022 |     |   |   Change |   |
|:-----------------------|:---------------|