Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 354

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 354
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 |  6 |   |
| Weighted-average discount rate – operating leases                   |     |              |  22 | % |     |      | 22 | % |

The Company’s ROU assets and liabilities for operating leases were $ 3,303,158and $ 3,941,560, respectively, as of December 31, 2024. The ROU assets and liabilities for operating leases were $ 3,658,493and $ 4,376,630, respectively, as of December 31, 2023. The ROU assets for operating leases were included in “Operating Lease Right-of-Use Assets, net” in the accompanying consolidated balance sheets. The liabilities for operating leases were included in the “Operating Lease Liabilities, Current” and “Operating Lease Liabilities, net of Current Portion” in the accompanying consolidated balance sheets.

Maturities of lease liabilities for the years through 2029 and thereafter are as follows:

SCHEDULE OF MATURITIES OF LEASE LIABILITIES

| Years Ending            |     | Amounts |            |   |
|:------------------------|:----|:--------|-----------:|:--|
| 2025                    |     | $       |  1,273,874 |   |
| 2026                    |     |         |  1,257,726 |   |
| 2027                    |     |         |  1,240,392 |   |
| 2028                    |     |         |  1,225,327 |   |
| 2029                    |     |         |  1,203,001 |   |
| thereafter              |     |         |    684,779 |   |
| Total lease payments    |     | $       |  6,885,099 |   |
| Less: Interest          |     |         | (2,943,539 | ) |
| Total Lease Liabilities |     | $       |  3,941,560 |   |

| 203 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 13 — COMMITMENTS AND CONTINGENCIES

As an inducement to obtain financing in 2022 and 2023 through convertible notes, the Company agreed to pay a portion of certain future revenues the Company may receive from the sale of FBLLC or the Flavored Bourbon brand to the investors in such financings in the amount of