Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 85

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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 January 2028, with an option for a three year extension. The change in ROU assets and related liabilities both for the terminated lease and the new warehouse lease were captured on the March 31, 2025 balance sheet. The Company also negotiated the reduction of warehouse space of its largest warehouse effective September 15, 2025, reducing annualized expenses for that space by approximately two-thirds.The following table presents the consolidated lease cost for amounts included in the measurement of lease liabilities for operating leases for the three and six months ended June 30, 2025 and 2024, respectively:Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Lease Cost:Amortization of Right-of-Use Assets$105,070 $113,086 $200,727 $257,470 Interest on Lease Liabilities222,933 242,939 455,278 467,115 Operating lease cost27,983 19,333 57,627 19,333 Total lease cost(1)$355,986 $375,358 $713,632 $743,918 ____________(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 June 30, 2025 and 2024, respectively:June 30,20252024Weighted-average remaining lease term – operating leases (in years)4.85.8Weighted-average discount rate – operating leases22%22%

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

The Company’s ROU assets and liabilities for operating leases were $3,284,292 and $3,906,963, respectively, as of June 30, 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 the 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