Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 112

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 112
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 were amended to fix the exercise price at $6.00 per share effective upon the closing of our initial public offering, thereby removing the floating price optionality. The fixing of the exercise price allowed us to reclassify the warrant liabilities as equity on a pro forma basis, per ASC Topic 420 as of November 25, 2024 (the date of the our initial public offering). 

Income Taxes

Our income tax provision consists of an estimate for U.S. federal and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities and changes in tax law.

Comparison of the Results of Operations for the Three Months Ended June 30, 2025 and 2024 

The numbers presented below that have been rounded for presentation purposes have been rounded individually. As a result, totals may reflect the effect of differences between: aggregating the individually rounded component numbers; and the rounding of the total of the individual (non-rounded) component numbers. In cases where rounding occurred, the amount of the rounding difference is generally $1,000 or less. Such differences are considered to be insignificant. The following table summarizes our results of operations for the three months ended June 30, 2025 and 2024.

48

For the Three Months Ended June 30,20252024ChangeNet SalesProducts$1,060,443 $1,444,035 $(383,592)Services261,379 398,280 (136,901)Total Net Sales1,321,822 1,842,315 (520,493)Cost of SalesProducts1,082,943 1,097,898 (14,955)Services11,791 (3,380)15,171 Total Cost of Sales1,094,734 1,094,518 216 Gross Profit227,088 747,797 (520,709)Operating ExpensesSales and Marketing1,971,923 1,297,796 674,127 General and Administrative4,904,126 1,747,694 3,156,432 Total Operating Expenses6,876,049 3,045,490 3,830,559 Operating Loss(6,648,961)(2,297,693)(4,351,268)Other Income (Expense)Interest Expense(595,309)(634,650)39,341 Change in Fair Value of Convertible Notes—