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Heritage Distilling Holding Co. Inc. (CASK-7.03%) has submitted its Form 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports net sales of $1,761,434 for the three months ended September 30, 2024, a decrease from $2,088,030 in the same period the previous year. The decrease is attributed to a reduction in service sales.
Cost of sales for the quarter was $1,131,691, compared to $1,372,376 in the previous year, resulting in a gross profit of $629,743, down from $715,654.
Sales and marketing expenses decreased to $1,271,063 from $1,469,778, while general and administrative expenses increased to $1,438,770 from $1,303,202.
The company reported an operating loss of $2,080,090 for the quarter, slightly higher than the $2,057,326 loss reported in the previous year.
Interest expense for the quarter was $661,643, and the company recorded a net loss of $3,432,931, compared to a net loss of $3,430,047 in the prior year.
For the nine months ended September 30, 2024, net sales were $5,309,907, a slight decrease from $5,525,384 in the previous year. The decrease is primarily due to lower service sales.
The company reported a net income of $5,426,409 for the nine months ended September 30, 2024, a significant improvement from a net loss of $31,641,742 in the previous year. This was largely due to a gain on investments and changes in the fair value of convertible notes and warrant liabilities.
Heritage Distilling identified material weaknesses in its internal controls over financial reporting, citing a lack of resources with SEC financial reporting experience.
The filing also discusses the company's liquidity and going concern considerations, noting that current cash balances may not be sufficient to meet working capital requirements for the next year.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Heritage Distilling Holding Co. Inc. quarterly 10-Q report dated December 27, 2024. To report an error, please email earnings@qz.com.