Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 305

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 305
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30, 2025 and 2024, respectively.

| Concentration of Revenues – Heritage Distilling Segment |     | Nine Months Ended 
     September 30, |      |     |    |   |
| 2025                                                    |     |                   | 2024 |     |    |   |
| Customer A                                              |     |                24 |    % |     | 35 | % |
| Customer B                                              |     |                27 |    % |     | 13 | % |
| Customer C                                              |     |                17 |    % |     | 16 | % |
| Customer D                                              |     |                10 |    % |     |  — | % |
| Customer E                                              |     |                12 |    % |     |  — | % |
|                                                         |     |                90 |    % |     | 64 | % |

With the addition of the $IP Token validator revenues commencing in September 2025, the Company does not expect that any of these customers will account for 10% or more of the Company’s accounts receivable in the future.

Accounts receivable — Accounts receivable are reported at net realizable value. Receivables consist of amounts due from distributors. In evaluating the collectability of individual receivable balances, the Company considers several factors, including the age of the balance, the customers’ historical payment history, its credit worthiness and economic trends. There was no allowance for credit losses as of September 30, 2025 and December 31, 2024.

Inventories — Inventories are stated at the lower of cost or net realizable value, with cost being determined under the weighted average method, and consist of raw materials, work-in-process, and finished goods. Costs associated with spirit production and other costs related to manufacturing of products for sale, are recorded as inventory. Work-in-process inventory is comprised of all accumulated costs of raw materials, direct labor, and manufacturing overhead to the respective stage of production. Finished goods and raw materials inventory includes the supplier cost, shipping charges, import fees, and federal excise taxes. Management routinely monitors inventory and periodically writes off damaged and unsellable inventory. There was no valuation allowance as of September 30, 2025 and December 31, 2024.

The Company holds volumes of barreled whiskey, which will not be sold within one year due to the duration of the aging process. Consistent with industry practices, all barre