Company: IPST
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001788230-25-000062
Chunk: 70

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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7,152 Interest on Lease Liabilities232,345 — Operating lease cost29,644 370,682 Total lease cost(1)$357,646 $377,834 ____________(1)Included in “Cost of sales”, “Sales and Marketing” and “General and Administrative “expenses in the accompanying consolidated statements of operations.The following table presents weighted-average remaining lease terms and weighted-average discount rates for the consolidated operating leases as of March 31, 2025 and 2024, respectively:March 31,20252024Weighted-average remaining lease term – operating leases (in years)55.9Weighted-average discount rate – operating leases22 %22 %The Company’s ROU assets and liabilities for operating leases were $3,389,361 and $4,023,485, respectively, as of March 31, 2025. The ROU assets and liabilities for operating leases were $3,303,158 and $3,941,560, respectively, as of December 31, 2024. The ROU assets for operating leases were included in “Operating Lease Right-of-Use Assets, net” in our accompanying consolidated balance sheets. The liabilities for operating leases were included in the “Operating Lease Liabilities, Current” and “Operating Lease Liabilities, net of Current Portion” in the accompanying consolidated balance sheets.

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)NOTE 9 — LEASES (cont.)

Maturities of lease liabilities for the remainder of 2025 and the years through 2029 and thereafter are as follows:Years EndingAmounts2025$1,022,140 20261,345,203 20271,329,535 20281,225,326 20291,203,001 thereafter684,779 Total lease payments$6,809,984 Less: Interest(2,786,499)Total Lease Liabilities$4,023,485 

NOTE 10 — COMMITMENTS AND CONTINGENCIES

As an inducement to obtain financing in 2022 and 2023 through convertible notes, the Company agreed to pay a portion of certain future revenues the Company may receive from the sale of FBLLC or the Flavored Bourbon brand to the investors in such financings in the amount of 150% of their subscription amount for an aggregate of approximately $24,495,000.