Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 138

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 138
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 approximately $323,000 of investment banking expense for                                                                              
 the year ended December 31, 2022 was primarily attributable to the value of warrants granted to investment advisors, which was a non-cash 
 expense.                                                                                                                                  |

| ● | The approximately $25,000 decrease in other professional fees                                                     
 was a result of a decrease in human resources and payroll-related consulting and other general professional fees. |

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Beginning in 2022, we began exploring funding
options, including preparations for the possible merger into a special purpose acquisition company (SPAC). While the costs directly associated
with this activity were capitalized and deferred to the balance sheet to be recognized as a cost of the transaction upon a successful
completion or other disposition, we also incurred certain other expenses related to preparing for the transaction that did not directly
qualify for capitalization and deferral, such as the preparation of audited consolidated financial statements, and certain expenses for
valuation and other financial services. In May 2023, we abandoned work on the proposed SPAC transaction, and as of December 31, 2023
we expensed the approximately $424,000 of related costs that had previously been capitalized and deferred to the balance sheet. See “Recent Developments” for further information.

|                                   | SPAC Related Professional Fees | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |    2022 |     |   |   Change |   |
|:----------------------------------|:-------------------------------|:-------------------------|----------:|:----|:--|--------:|:----|:--|---------:|:--|
| Accounting and Valuation Services |                                | $                        |   151,000 |     | $ |       — |     | $ |  151,000 |   |
| Legal                             |                                |                          |   983,000 |     |   |       — |     |   |  983,000 |   |
| Investment Banking                |                                |                          |         — |     |   | 323,000 |     |   | (323,000 | ) |
|                                   |                                | $                        | 1,134,000 |     | $ | 323,000 |     | $ |  811,000 |   |

Interest Expense

Interest expense decreased by approximately $84,000
to approximately $2,527,000 for the year