Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 297

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 297
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 Deferred transaction costs were approximately $ 1,397,964and $ 708,817as of December 31, 2023 and 2022, respectively. As of May 18, 2023, the Business Combination Agreement was terminated. Accordingly, the related balance of deferred transaction costs related to the Business Combination in the amount of $ 423,869were expensed to general and administrative expense during the period ended June 30, 2023, deferred transaction costs expensed related to the Business Combination Agreement portion were $ 208,682and $ 215,187as of June 30, 2023 and December 31, 2022, respectively. Subsequent to the termination of the Business Combination Agreement, the Company is contemplating an initial public offering (“IPO”). Accordingly, the deferred offering costs relating to the Company’s contemplated IPO will continue to be deferred and capitalized as incurred, and were $ 1,397,964and $ 493,630as of December 31, 2023 and 2022, respectively. The deferred offering costs relating to the Company’s contemplated IPO will be offset against IPO proceeds upon the consummation of the offering. In the event the IPO is terminated, abandoned or significantly delayed, any deferred transaction costs will be immediately recognized in operating expenses. Liabilities for Deferred Revenue— During 2023, the Company entered into a distilled spirits barreling production agreement with Tiburon Opportunity Fund, L.P. This agreement is for production of 1,200barrels of distilled spirits over time. There was a prepayment of $ 1,000,000made in January 2023. Subsequent to December 31, 2023, this agreement was amended in March 2024 to a reduced number of 600barrels for $ 500,000. The then $ 500,000excess prepayment was then used to purchase a Whiskey Note in the principal amount of $ 672,500and subsequently exchanged (contingent upon the consummation of this offering) under the terms of a Subscription Exchange Agreement for common stock in conjunction with the February 29, 2024 exchange of Whiskey Notes for common stock. (See Note 16.). Property and equipment, net of accumulated depreciation— Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets — generally threeto twentyyears. Leasehold improvements are amortized on a straight-line basis over the shorter of the asset