Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 258

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 258
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 - Cash Wages and Related Expense$1,555,000 $1,309,000 $246,000 Personnel - Share-Based Compensation647,000 — 647,000 Tasting Room44,000 70,000 (26,000)Leases and Rentals378,000 353,000 25,000 Sales and Marketing Expenses288,000 277,000 11,000 Other375,000 479,000 (104,000)$3,287,000 $2,488,000 $799,000 

•The approximately $647,000 of personnel - share-based compensation in the three months ended June 30, 2025, for which there was no such expense in the comparable three months ended June 30, 2024 included; $511,000 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 months ended June 30, 2025 and 2024), plus additional RSU grants employee recognitions of $136,000.

•The approximately $26,000 decrease in tasting room expenses was the result of decrease in spending.

•The approximately $104,000 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 $6,312,000 for the six months ended June 30, 2025, compared to approximately $3,194,000 for the six months ended June 30, 2024. This approximately $3,118,000 increase included:

General and Administrative ExpenseSix Months Ended June 30,(rounded to $000’s)Change20252024Personnel - Cash Wages and Related Non-Cash Expense$1,394,000 $1,083,000 $311,000 Personnel - Share-Based Compensation1,810,000 — 1,810,000 Recruiting and retention7,000 12,000 (5,000)Professional Fees960,000 772,000 188,000 Professional Fees - Share-Based Compensation212,000 — 212,000 Leases and Rentals285,000 321,000 (36,000)Depreciation