Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 163

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 163
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 cost associated with our new tasting room location in Eugene, Oregon from the Thinking Tree Spirits acquisition offset by a decrease in rent expenses from closure of our Ballard, Washington retail location in March 2023. •The approximately $503,000 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 -partye -commerceplatform and the ending of two large sports sponsorships that were put under contract before COVID -19shutdowns went into effect (and could not be cancelled), which contracts were extended through negotiations in 2022 and 2023, and that were not renewed nor expensed in 2024 or beyond. •The approximately $177,000 increase in other sales and marketing expenses included increases in: professional fees for contracted Chief Revenue Officer services and e -commercedistribution services and travel; software for an improved point -of-salesoftware upgrade; retail tasting room location utilities and insurance; and a net increase in other sales and marketing expenses. •Removing the approximately $730,000 in non -cashshare -basedcompensation expense recognized in 2024 for RSU grant awards for members of the Sales and Marketing team from the expenses for 2024 would result in a total cash expense under Sales and Marketing Expense of $5,309,000 for 2024, $629,000 less that the cash expenditures for 2023.

96

General and Administrative Expenses General and administrative expenses were approximately $11,006,000 for the year ended December 31, 2024, compared to approximately $7,477,000 for the year ended December 31, 2023. This approximately $3,529,000 increase included:

| General and Administrative Expense           
 2024                                         |     | Years Ended December 31, 
 (rounded to $000’s)      |       2023 |     |   |    Change |     |   |           |   |
|:---------------------------------------------|:----|:-------------------------|-----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Personnel – Cash Wages and Related Expense   |     | $                        |  2,056,000 |     | $ | 1,955,000 |     | $ |   101,000 |   |
| Personnel – Share-Based Compensation         |     |                          |