Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 248

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 248
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5 and 2024), plus additional RSU grants employee recognitions of $525,000.

•The approximately $275,000 increase in professional fees expense was primarily the result of year end audit fees recognized in the three months ended June 30, 2025 for which there was no such expense in the comparable three months ended June 30, 2024, $221,000.

•The approximately $212,000 of non-cash share-based compensation Professional fees expense recognized in the three months ended June 30, 2025, for which there was no such expense in the comparable three months ended June 30, 2024 for RSU awards granted to outside consultants in lieu of cash.

•The approximately $337,000 of non-cash share-based compensation other - director fees expense recognized in the three months ended June 30, 2025, for which there was no such expense in the comparable three months ended June 30, 2024 for RSU awards granted to directors in lieu of cash.

Interest Expense

Interest expense decreased by approximately $39,000 to approximately $595,000 for the three months ended June 30, 2025, compared to approximately $635,000 for the three months ended June 30, 2024. The decrease included approximately $69,000 resulting from the decreased principal balance of the Silverview loan in 2025 compared to 2024, and an approximately $9,000 decrease in interest expense related to the channel partners loan having been paid off in 2024. 

Income Taxes

The provision for income taxes for the three months ended June 30, 2025 and 2024 was immaterial, primarily as we were in a net loss position for those periods.

Comparison of the Results of Operations for the Six Months Ended June 30, 2025 and 2024 

The numbers presented below that have been rounded for presentation purposes have been rounded individually. As a result, totals may reflect the effect of differences between: aggregating the individually rounded component numbers; and the rounding of the total of the individual (non-rounded) component numbers. In cases where rounding occurred, the amount of the rounding difference is generally $1,000 or less. Such differences are considered to be insignificant. 

55

The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024.

For the Six Months EndedJune 30,20252024ChangeNet SalesProducts$1,898,498