Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 103

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 103
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 |   |  140,000 |   |
|                        |              | $                   | 200,000 |     | $ | 287,000 |     | $ |  (87,000 | ) |

| 68 |

A majority of our professional fees expense in the three months ended March 31, 2025 and 2024 were incurred as a result of: general preparedness of our financial reporting and capital structure for our initial public offering and related SEC reporting, and the preparation and filing of a registration statement under the Securities Act related to the ELOC we put in place during the quarter. Accordingly, within that context, most of our professional fees expense and changes in expense levels between the respective year-over-year periods were as follows:

| ● | The                                                                                                 
 approximately $148,000 decrease in accounting and valuation services expenses were primarily        
 the result of the end of the need for valuation related services subsequent to the reclassification 
 of convertible notes and liabilities (which were recorded at fair value) to equity effective        
 upon our IPO in November 2024.                                                                      |

| ● | The                                                                                         
 approximately $41,000 decrease in legal fees was primarily the result of legal work in the  
 three months ended March 31, 2025 including expenses related to our SEC filings, ELOC       
 Purchase Agreement and Series B Preferred Stock, compared to legal work in the three months 
 ended March 31, 2024 including expenses related to our Whiskey Notes offering, acquisition  
 of Thinking Tree Spirits, and work on preparation for our initial public offering (which    
 began in late 2023).                                                                        |

| ● | The                                                                                            
 approximately $140,000 increase in other professional fees was primarily the result of related 
 to third party investor relations and media relations services and moving human resources      
 and payroll to outside firms.                                                                  |

Beginning in late 2023 we began exploring other funding options, including an initial public offering While the costs directly associated with this activity were capitalized and deferred to the balance sheet to be recognized as a cost of the transaction upon a successful completion or other disposition, we also incurred certain other expenses related to preparing for the transaction that did not directly qualify for capitalization and deferral, such as the preparation of audited consolidated financial statements, and certain expenses for valuation and other financial services. On November 25, 2024, we successfully completed our initial public offering, and recognized approximately $2,368,000 of deferred offering expenses as a cost of the transaction.

Interest Expense

Interest