Company: IPST
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001788230-25-000048
Chunk: 156

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 7
Chunk 156
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 31, 2024, compared to approximately $7,477,000 for the year ended December 31, 2023. This approximately $3,529,000 increase included:

General and Administrative ExpenseYears Ended December 31, (rounded to $000’s)Change20242023Personnel - Cash Wages and Related Expense$2,056,000 $1,955,000 $101,000 Personnel - Share-Based Compensation2,414,000 6,000 2,408,000 Recruiting and retention20,000 163,000 (143,000)Professional Fees2,195,000 2,220,000 (25,000)Professional Fees - Share-Based Compensation1,571,000 — 1,571,000 Leases and Rentals593,000 658,000 (65,000)Depreciation1,022,000 1,160,000 (138,000)Other1,135,000 1,315,000 (180,000)$11,006,000 $7,477,000 $3,529,000 

•The approximately $11,006,000 in General and Administrative Expenses listed in the table above includes a total of approximately $3,985,000 in non-cash share-based compensation expense recognized in 2024 for RSU awards, comprised of approximately $2,414,000 of such non-cash expense to General and Administrative employees and approximately $1,571,000 in non-cash expense to consultants. (See further detail below in Professional Fees for discussion of the non-cash expenses recognized for consultants). 

•Non-cash share-based expenses related to RSU grant awards of $3,985,097 make up 36.2%% of the total General and Administrative expenses for 2024. 

•The approximately $3,985,000 in non-cash share-based expenses related to RSU grants recognized in 2024 is greater than the total increase in General and Administrative expenses from 2023 to 2024 by approximately $450,000. This indicates that absent the non-cash share-based compensation recognized in 2024, General and Administrative expenses were otherwise down on a cash basis by approximately $450,000, despite any expenses incurred by us to complete our initial public offering.   

•Beginning in May 2023, certain senior level employees elected to defer a portion of their salary until such time