Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 358

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 358
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 a square feet to an approximately square feet lease. The monthly expenses associated with the new lease were reduced from approximately $ per month down to $ per month. The new lease expires in January 2028, with an option for a extension. The change in ROU assets and related liabilities both for the terminated lease and the new warehouse lease were captured on the March 31, 2025 balance sheet. The Company also negotiated the reduction of warehouse space of its largest warehouse effective September 15, 2025, reducing annualized expenses for that space by approximately two-thirds.

The following table presents the consolidated lease cost for amounts included in the measurement of lease liabilities for operating leases for the nine months ended September 30, 2025 and 2024, respectively:

| Lease Cost:                         |     | Nine Months Ended 
 September 30,     
 2025              |           |     | 2024 |           |
|:------------------------------------|:----|:------------------|----------:|:----|:-----|----------:|
| Amortization of Right-of-Use Assets |     | $                 |   304,217 |     | $    |   365,088 |
| Interest on Lease Liabilities       |     |                   |   657,577 |     |      |   698,609 |
| Operating lease cost                |     |                   |    75,267 |     |      |    39,356 |
| Total lease cost(1)                 |     | $                 | 1,037,061 |     | $    | 1,103,053 |

____________

(1)

F-44

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 10 — LEASES (cont.)

The following table presents weighted-average remaining lease terms and weighted-average discount rates for the consolidated operating leases as of September 30, 2025 and 2024, respectively:

|                                                                     |     | September 30, |   |     |      |   |
|                                                                     |     |          2025 |   |     | 2024 |   |
| Weighted-average remaining lease term – operating leases (in years) |     |           4.6 |   |     |  5.8 |   |
| Weighted-average discount rate – operating leases                   |     |            22 | % |     |   22 | % |

The Company’s ROU assets