Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 110

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 110
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 for consultants, professional      
 fees decreased by approximately $25,000 to approximately $2,195,000 from approximately $2,220,000 
 in the years ended December 31, 2024 and 2023, respectively.                                      |
| ● | The                                                                                               
 approximately $759,000 decrease in accounting and valuation services expenses were primarily      
 the result of hiring an in-house Chief Financial Officer, moving what were professional fees      
 paid for a contract acting Chief Financial Officer into General and Administrative costs,         
 and the end of valuation related services to the SPAC transactions that was terminated in         
 May 2023.                                                                                         |
| ● | The                                                                                               
 approximately $340,000 decrease in legal fees was primarily the result of legal work in the       
 year ended December 31, 2024 related to our initial public offering compared to legal work        
 in the year ended December 31, 2023 related to the merger agreement for the proposed SPAC         
 transaction (which was terminated in May 2023) and work on our initial public offering (which     
 began in late 2023).                                                                              |
| ● | The                                                                                               
 approximately $431,000 increase in other professional fees was primarily the result of related    
 to third party investor relations and media relations services and moving human resources         
 and payroll to outside firms.                                                                     |

Beginning in 2022, we began exploring funding options, including preparations for the possible merger into a special purpose acquisition company (SPAC). While the costs directly associated with this activity were capitalized and deferred to the balance sheet to be recognized as a cost of the transaction upon a successful completion or other disposition, we also incurred certain other expenses related to preparing for the transaction that did not directly qualify for capitalization and deferral, such as the preparation of audited consolidated financial statements, and certain expenses for valuation and other financial services. In May 2023, the SPAC agreement ended based upon the agreement’s maturity date and was not extended, ending the transaction, and as of December 31, 2023, we expensed the approximately $424,000 of related costs that had previously been capitalized and deferred to the balance sheet. See “ Recent Developments” for further information.

Beginning in late 2023 we began exploring other funding options, including an initial public offering While the costs directly associated with this activity were capitalized and deferred to the balance sheet to be recognized as a cost of the transaction upon a successful completion or other disposition, we also incurred certain other expenses related to preparing for the transaction that