Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 202

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part II, Item 8
Chunk 202
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4-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the statement of operations. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact these standards will have on its financial statements.0

NOTE 3 — INVENTORIES

Inventories consisted of the following:September 30,2025December 31,2024Finished Goods$444,981 $461,254 Work-in-Process1,073,154 936,181 Raw Materials762,135 1,074,132 Total Inventory$2,280,270 $2,471,567 

NOTE 4 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:Estimated Useful Lives (in years)September 30,2025December 31,2024Machinery and Equipment5 to 20$2,916,063 $3,478,062 Leasehold ImprovementsLease term6,930,584 6,930,585 Computer and Office Equipment3 to 102,086,612 2,460,632 Vehicles5272,910 274,559 Construction in ProgressN/A— 84,957 Total Property and Equipment12,206,169 13,228,795 Less: Accumulated Depreciation(8,096,249)(7,779,383)Property and Equipment, net of Accumulated Depreciation$4,109,920 $5,449,412 

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Consolidated Financial StatementsNOTE 4 — PROPERTY AND EQUIPMENT, NET (cont.)

Depreciation expense related to property and equipment for the three months ended September 30, 2025 and 2024 was 262,020 and 316,273 respectively; and for the nine months ended September 30, 2025 and 2024 was $832,476 and $984,329 respectively.

NOTE 5 — BORROWINGS

Borrowings of the Company consisted of the following:September 30,2025December 31,2024Silverview Loan