Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 360

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 2
Chunk 360
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4), plus additional RSU grants recognitions of $136,000.

•The approximately $46,000 decrease in tasting room expenses was the result of decrease in spending.

•The approximately $134,000 decrease in other sales and marketing expenses stems from decreased deals, discounts, rebates and incentives offered to wholesale distributors for low margin products and the ending of a contract for an outside sales consultant as of December 31, 2024.

General and Administrative Expenses

General and administrative expenses were approximately $8,294,000 for the nine months ended September 30, 2025, compared to approximately $4,632,000 for the nine months ended September 30, 2024. This approximately $3,662,000 increase included:

General and Administrative ExpenseNine Months Ended September 30,(rounded to $000’s)Change20252024Personnel - Cash Wages and Related Non-Cash Expense$1,887,000 $1,611,000 $276,000 Personnel - Share-Based Compensation1,810,000 — 1,810,000 Recruiting and retention(5,000)18,000 (23,000)Professional Fees1,077,000 1,028,000 49,000 Professional Fees - Share-Based Compensation212,000 — 212,000 Leases and Rentals430,000 447,000 (17,000)Depreciation700,000 785,000 (85,000)Other1,846,000 743,000 1,103,000 Other - Share-Based Director Fees337,000 — 337,000 $8,294,000 $4,632,000 $3,662,000 

•The approximately $276,000 increase in wages and related expenses was primarily the result of wage increases. 

•The approximately $1,810,000 of personnel - share-based compensation in the nine months ended September 30, 2025, for which there was no such expense in the comparable nine months ended September 30, 2024 included; $1,286,000 grant of matching non-cash RSU compensation related to deferred compensation. (See Notes 2 and 7 of our condensed consolidated financial statements for the Three and Nine Month Periods ended September 30, 2025 and 2024), plus additional RSU grants employee recognitions of $525,000.

•The approximately 49,