Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 353

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 353
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 termination, asset-based factors such as the physical location of the asset and entity-based factors 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-cancelable lease 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.

| 202 |

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:

SCHEDULE OF CONSOLIDATED LEASE COST

| Lease Cost:                         |     | 2024                      
 Years Ended  December 31, 
 2024                      |           |     | 2023 
 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) | Included                                                                            
 in “Cost of sales”, “Sales and Marketing” and “General and                          
 Administrative “expenses in the accompanying consolidated statements of operations. |

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 |   |     |