Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 436

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 436
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 the asset and entity -basedfactors such as the importance of the leased asset to the Company’s operations to determine the operating lease term. The Company generally uses the base, non -cancelablelease term when determining the operating lease ROU assets and lease liabilities. The ROU asset is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable in accordance with Accounting Standards Codification Topic 360, Property, Plant, and Equipment.

F-93

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 12 — LEASES (cont.)

The following table presents the consolidated lease cost for amounts included in the measurement of lease liabilities for operating leases for the years ended December 31, 2024, and 2023, respectively:

| Lease Cost:                         |     | Years Ended  
 December 31, 
 2024         |           |     | 2023 |           |
|:------------------------------------|:----|:-------------|----------:|:----|:-----|----------:|
| Amortization of Right-of-Use Assets |     | $            |   508,156 |     | $    |   492,806 |
| Interest on Lease Liabilities       |     |              |   896,673 |     |      | 1,000,997 |
| Operating lease cost                |     |              |    76,353 |     |      |     2,042 |
| Total lease cost(1)                 |     | $            | 1,481,182 |     | $    | 1,495,845 |

____________

(1)

The following table presents weighted-average remaining lease terms and weighted-average discount rates for the consolidated operating leases as of December 31, 2024 and 2023, respectively:

|                                                                     |     | December 31, |   |     |      |   |
|                                                                     |     |         2024 |   |     | 2023 |   |
| Weighted-average remaining lease term – operating leases (in years) |     |          5.3 |   |     |    6 |   |
| Weighted-average discount rate – operating leases                   |     |           22 | % |     |   22 | % |

The Company’s ROU assets and liabilities for operating leases were $ and $, respectively, as of December 31, 2024. The ROU assets and liabilities for