Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 306

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 306
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ise taxes— Excise taxes are levied on alcoholic beverages by governmental agencies. For imported alcoholic beverages, excise taxes are levied at the time of removal from the port of entry and are payable to the U.S. Customs and Boarder Protection (the “CBP”). For domestically produced alcoholic beverages, excise taxes are levied at the time of removal from a bonded production site and are payable to the Alcohol and Tobacco Tax and Trade Bureau (the “TTB”). These taxes are not collected from customers but are instead the responsibilities of the Company. The Company’s accounting policy is to include excise taxes in “Cost of Sales” within the consolidated statements of operations, which totaled $ 39,687and $ 47,225for the three months ended June 30, 2025 and 2024, respectively; and $ 70,263and $ 93,067for the six months ended June 30, 2025 and 2024, respectively. Shipping and handling costs— Shipping and handling costs of $ 27,339and $ 19,518were included in “Cost of Sales” within the condensed consolidated statements of operations for the three months ended June 30, 2025 and 2024, respectively. Shipping and handling costs of $ 81,110and $ 109,444were included in “Cost of Sales” within the condensed consolidated statements of operations for the six months ended June 30, 2025 and 2024, respectively. Stock -based compensation— The Company measures compensation for all stock -basedawards at fair value on the grant date and recognizes compensation expense over the service period on a straight -linebasis for awards expected to vest. (See also Note 7: stock options; and, restricted stock units.) The fair value of stock options granted is estimated on the grant date using the Black -Scholesoption pricing model. The Company uses a third -partyvaluation firm to assist in calculating the fair value of the Company’s stock options. This valuation model requires the Company to make assumptions and judgment about the variables used in the calculation, including the volatility of the Company’s common stock and assumed risk -freeinterest rate, expected years until liquidity, and discount for lack of marketability. Forfeitures are accounted for and are recognized in calculating net expense in the period in which they occur. Stock -basedcompensation from vested stock options, whether forfeited or not, is not reversed. During the six months ended June 30, 2025