Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 197

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part II, Item 8
Chunk 197
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(unaudited)NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

The following table presents revenue disaggregated by sales channel:For the Three Months EndedSeptember 30,For the Nine Months EndedSeptember 30,2025202420252024Direct to Consumer$585,500 $844,689 $1,757,198 $2,526,302 Wholesale230,014 492,208 956,814 1,299,067 Third Party— 38,333 — 225,718 Total Products Revenue815,514 1,375,230 2,714,012 4,051,087 Distillery Services264,943 386,204 780,250 1,258,820 Total Revenue from Contracts with Customers1,080,4571,761,4343,494,2625,309,907Crypto and Related Revenue1,908,544— 1,908,544— Total Revenue$2,989,001 $1,761,434 $5,402,806 $5,309,907 Excise taxes — Excise taxes are levied on alcoholic beverages by governmental agencies. For imported alcoholic beverages, excise taxes are levied at the time of removal from the port of entry and are payable to the U.S. Customs and Border Protection (the “CBP”). For domestically produced alcoholic beverages, excise taxes are levied at the time of removal from a bonded production site and are payable to the Alcohol and Tobacco Tax and Trade Bureau (the “TTB”). These taxes are not collected from customers but are instead the responsibilities of the Company. The Company’s accounting policy is to include excise taxes in “Cost of Sales” within the consolidated statements of operations, which totaled $42,900 and $51,644 for the three months ended September 30, 2025 and 2024, respectively; and $113,164 and $144,711 for the nine months ended September 30, 2025 and 2024, respectively.Shipping and handling costs — Shipping and handling costs of $37,136 and $43,879 were included in “Cost of Sales” within the condensed consolidated statements of operations for the three months ended September 30, 2025 and 2024, respectively. Shipping and handling costs of $118,246 and $153,323 were included in “Cost of Sales” within the condensed consolidated statements