Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 154

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 154
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      2023 |     |   |    Change |     |   |            |   |
|:-----------------------|:----|:-------------------------|----------:|:----|:--|----------:|:----|:--|-----------:|:--|
| Third Party Production |     | $                        |    99,000 |     | $ | 1,094,000 |     | $ |   (995,000 | ) |
| Retail Services        |     |                          | 1,442,000 |     |   | 1,387,000 |     |   |     55,000 |   |
| Consulting and Other   |     |                          |   246,000 |     |   |   354,000 |     |   |   (108,000 | ) |
|                        |     | $                        | 1,787,000 |     | $ | 2,835,000 |     | $ | (1,048,000 | ) |

•The approximately $995,000 decrease in third -partyproduction resulted from the ending of a low -marginthird -partybottling contract as of January31, 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 -partybarrel sales and storage revenues. •The approximately $55,000 increase in retail services included Cask Club sales increasing $29,000 and Cocktail/Tasting orders in the tasting rooms increasing $30,000. •The approximately $108,000 decrease in consulting fees is related to TBN projects as we moved the announced Coquille and Tonto Apache projects that were in planning phase into construction phase in preparation for openings in 2026. Cost of Sales Cost of sales were approximately $6,276,000 and $5,820,000 for the years ended December 31, 2024 and 2023, respectively, an increase of approximately $456,000, or 7.8%, period over period.

| Total Cost of Sales 
 2024                |     | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |    Change |     |   |