Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 140

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 140
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247,000)

•The approximately $160,000 decrease in sales and marketing personnel expense was primarily due to reduction of one staff member.

•The approximately $124,000 decrease in sales 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 $29,000 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.

General and Administrative Expenses

General and administrative expenses were approximately $1,981,000 for the three months ended September 30, 2025, compared to approximately $1,439,000 for the three months ended September 30, 2024. This approximately $542,000 increase included:

General and Administrative ExpenseThree Months Ended September 30, (rounded to $000’s)Change20252024Personnel - Cash Wages and Related Non-Cash Expense$492,000 $529,000 $(37,000)Personnel - Share-Based Compensation— — — Recruiting and retention(12,000)6,000 (18,000)Professional Fees118,000 255,000 (137,000)Professional Fees - Share-Based Consulting Fees— — — Leases and Rentals144,000 126,000 18,000 Depreciation223,000 253,000 (30,000)Other1,016,000 270,000 746,000 Other - Share-Based Director Fees— — — $1,981,000 $1,439,000 $542,000 

•Approximately $137,000 decrease in professional fees expense was primarily the result of write down of debt negotiated with vendors of approximately $529,000 offset by Public Relations of approximately $222,000 recognized in the three months ended September 30, 2025. These expenses were not recognized in the comparable three months ended September 30, 2024.

•The approximately $746,000 increase in other expense is primarily the result of: sales and write offs of equipment and other from down sizing our footprint of $475,000, director fees of $109,000, directors and 

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officers insurance of $