Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 264

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 264
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 approximately $ 18,000per month down to $ 7,700per month. The new lease expires in January 2028, with an option for a three yearextension. The change in ROU assets and related liabilities both for the terminated lease and the new warehouse lease have been captured on the March 31, 2025 balance sheet.

| 153 |

Heritage Distilling Holding Company, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

NOTE 9 — LEASES (cont.)

The following table presents the consolidated lease cost for amounts included in the measurement of lease liabilities for operating leases for the three months ended March 31, 2025 and 2024, respectively:

SCHEDULE OF CONSOLIDATED LEASE COST

| Lease Cost:                   |     | 2025               
 Three              
 Months Ended March 
 31,                
 2025               |         |     | 2024 
 2024 |         |
|:------------------------------|:----|:-------------------|--------:|:----|:-----|--------:|
| Amortization                  
 of Right-of-Use Assets        |     | $                  |  95,657 |     | $    |   7,152 |
| Interest on Lease Liabilities |     |                    | 232,345 |     |      |       — |
| Operating                     
 lease cost                    |     |                    |  29,644 |     |      | 370,682 |
| Total                         
 lease cost(1)                 |     | $                  | 357,646 |     | $    | 377,834 |

| (1) | Included                                                                            
 in “Cost of sales”, “Sales and Marketing” and “General and                          
 Administrative “expenses in the accompanying consolidated statements of operations. |

The following table presents weighted-average remaining lease terms and weighted-average discount rates for the consolidated operating leases as of March 31, 2025 and 2024, respectively:

|                                            |     | March 
   31, |    |   |     |      |     |   |
|                                            |     |  2025 |    |   |     | 2024 |     |   |
| Weighted-average remaining lease           
 term – operating leases (in years)         |     |       |  5 |   |     |      | 5.9 |   |
| Weighted-average discount rate – operating 
 leases                                     |     |       | 22 |