Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 121

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 121
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 and marketing expenses included: an increase in digital advertising production expense to drive DtC sales of our highest margin spirits brands, offset by decreases in sponsorships and print advertising as we shifted to a new third-party e-commerce platform.

•The approximately $23,000 decrease in other sales and marketing expenses stems from decreased deals, discounts, rebates and incentives offered to wholesale distributors for low margin products and the ending of a contract for an outside sales consultant as of December 31, 2024.

54

General and Administrative Expenses

General and administrative expenses were approximately $4,424,000 for the three months ended June 30, 2025, compared to approximately $1,747,000 for the three months ended June 30, 2024. This approximately $2,677,000 increase included:

General and Administrative ExpenseThree Months Ended June 30,(rounded to $000’s)Change20252024Personnel - Cash Wages and Related Non-Cash Expense$504,000 $584,000 $(80,000)Personnel - Share-Based Compensation1,810,000 — 1,810,000 Recruiting and retention2,000 7,000 (5,000)Professional Fees760,000 485,000 275,000 Professional Fees - Share-Based Consulting Fees212,000 — 212,000 Leases and Rentals143,000 148,000 (5,000)Depreciation228,000 272,000 (44,000)Other428,000 251,000 177,000 Other - Share-Based Director Fees337,000 — 337,000 $4,424,000 $1,747,000 $2,677,000 

•The approximately $1,810,000 of personnel - share-based compensation in the three months ended June 30, 2025, for which there was no such expense in the comparable three months ended June 30, 2024 included; $1,286,000 grant of matching non-cash RSU compensation related to deferred compensation.  (See Notes 2 and 7 of our condensed consolidated financial statements for the three months ended June 30, 2025 and 2024), plus additional RSU grants employee recognitions of $525,000.

•The approximately $275,000 increase in professional fees expense was primarily the result of year end audit fees recognized in the three months ended June 30,