Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 161

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 161
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 -over-yearperiods were as follows: •The approximately $1,571,000 of non -cashshare -basedcompensation expense recognized in 2024 for RSU awards granted to consultants. 41.7% of our Professional Fees in 2024 were non -cashshare -basedcompensation expensed in 2024 from the awarding of RSUs to outside consultants in lieu of cash. •Excluding the approximately $1,571,000 in non -cashshared -basedexpenses for consultants, professional fees decreased by approximately $25,000 to approximately $2,195,000 from approximately $2,220,000 in the years ended December31, 2024 and 2023, respectively. •The approximately $759,000 decrease in accounting and valuation services expenses were primarily the result of hiring an in -houseChief Financial Officer, moving what were professional fees paid for a contract acting Chief Financial Officer into General and Administrative costs, and the end of valuation related services to the SPAC transactions that was terminated in May 2023. •The approximately $340,000 decrease in legal fees was primarily the result of legal work in the year ended December31, 2024 related to our initial public offering compared to legal work in the year ended December31, 2023 related to the merger agreement for the proposed SPAC transaction (which was terminated in May 2023) and work on our initial public offering (which began in late 2023). •The approximately $431,000 increase in other professional fees was primarily the result of related to third party investor relations and media relations services and moving human resources and payroll to outside firms. 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, the SPAC agreement ended based upon the agreement’s maturity date and was not extended, ending the 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”