Company: IPST
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001788230-25-000062
Chunk: 37

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 continuing operations before income tax expense (benefit) disaggregated between federal, state, and foreign. The new standard is effective for the Company for its annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 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.

NOTE 3 — INVENTORIES

Inventories consisted of the following:March 31, 2025December 31, 2024Finished Goods$605,190 $461,254 Work-in-Process871,752 936,181 Raw Materials1,028,546 1,074,132 Total Inventory$2,505,488 $2,471,567 

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)

NOTE 4 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:Estimated Useful Lives (in years)March 31,2025December 31,2024Machinery and Equipment5 to 20$3,406,433 $3,478,062 Leasehold ImprovementsLease term6,930,585 6,930,585 Computer and Office Equipment3 to 102,458,194 2,460,632 Vehicles5274,559 274,559 Construction in ProgressN/A84,957