Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 132

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 132
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 costs, costs related to trade shows and events and an allocated portion of overhead costs. We expect our sales and marketing costs will increase as we expand our headcount, open new locations in partnership with tribes, expand our wholesale distribution footprint and initiate new marketing campaigns. General and Administrative General and administrative expenses consist primarily of personnel -relatedexpenses associated with our executive, finance, legal, insurance, information technology and human resources functions, as well as professional fees for legal, audit, accounting and other consulting services, and an allocated portion of overhead costs. We expect our general and administrative expenses will increase on an absolute dollar basis as a result of operating as a public company, including expenses necessary to comply with the rules and regulations applicable to companies listed on a national securities exchange and related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, as well as increased expenses for general and director and officer insurance, investor relations, directors fees and other administrative and professional services. In addition, we expect to incur additional costs as we hire additional personnel and enhance our infrastructure to support the anticipated growth of our business. We expect that the one -timelarge costs associated with preparing our initial public offering will not need to be recurring expenses, allowing us to focus on baseline costs. As of October 13, 2025, we had outstanding restricted stock units (“RSUs”) that, upon vesting, will settle into an aggregate of 2,500,000shares of common stock based upon the grant date with a fair value of $0.728 per unit. We recognized an aggregate of $2,684,395 of previously -unrecognizedcompensation expense for RSU awards upon completion of our IPO. Included in the previously -unrecognizedcompensation expense are an aggregate of 74 234,525 RSUs to employees, directors and consultants that the Board of Directors approved in May 2024, with a fair grant value of $4.00 per unit. These RSUs contained a double trigger and, upon grant, were deemed to have met their time -basedservice requirements for vesting. Interest Expense Interest expenses include cash interest accrued on our secured debt, cash interest and non -cashinterest paid or accrued on our notes payable, interest on leased equipment or assets, and costs and interest on credit cards. Change in Fair Value of Convertible Notes and Warrant Liabilities We elected the fair value option for the convertible notes we issued in 2022 and 2023 (the “Convertible Notes”) and the warrants that were issued in connection with