Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 315

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 315
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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)Depreciation477,000 532,000 (55,000)Other830,000 474,000 356,000 Other - Share-Based Director Fees337,000 — 337,000 $6,312,000 $3,194,000 $3,118,000 

•The approximately $311,000 increase in wages and related expenses was primarily the result of  

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•The approximately $1,810,000 of personnel - share-based compensation in the six months ended June 30, 2025, for which there was no such expense in the comparable six months ended June 30, 2024 included; $1,286,000 grant of matching non-cash RSU compensation related to deferred compensation.  (See Notes 2 and 7 of our condensed consolidated financial statements for the six months ended June 30, 2025 and 2024), plus additional RSU grants employee recognitions of $525,000.

•The approximately 188,000 increase in professional fees expense was primarily the result of year end audit fees recognized in the six months ended June 30, 2025 for which there was no such expense in the comparable six months ended June 30, 2024, $221,000.

•The approximately $212,000 of non-cash share-based compensation Professional fees expense recognized in the three months ended June 30, 2025, for which there was no such expense in the comparable three months ended June 30, 2024 for RSU awards granted to outside consultants in lieu of cash.

•The approximately $36,000 decrease in leases and rentals was primarily the result of moving from a large warehouse in Eugene, Oregon to a smaller warehouse starting in January 2025. 

•The approximately $356,000 increase in other general and administrative expenses included accumulative smaller changes in utilities, travel, general insurance, public company related insurance and other administrative expenses, including board compensation.

•The approximately $337,000 of non-cash share-based compensation other - director fees expense