Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 99

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 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 September 30, 2025 and 2024, respectively:September 30,20252024Weighted-average remaining lease term – operating leases (in years)4.65.8Weighted-average discount rate – operating leases22%22%The Company’s ROU assets and liabilities for operating leases were $2,797,808 and $3,408,855, respectively, as of September 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 

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)NOTE 10 — LEASES (cont.)

Liabilities, Current” and “Operating Lease Liabilities, net of Current Portion” in the accompanying consolidated balance sheets.Maturities of lease liabilities for the remainder of 2025 and the years through 2029 and thereafter are as follows:Years EndingAmounts2025$308,994 20261,210,428 20271,195,583 20281,092,122 20291,070,866 thereafter651,814 Total lease payments$5,529,807 Less: Interest(2,120,952)Total Lease Liabilities$3,408,855 

NOTE 11 — 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. The Company maintains operating leases for various facilities. See Note 10, Leases, for further information.Litigation — From time to time, the Company may become involved in various legal proceedings in the ordinary course of its business and may be subject to third-party infringement claims.In the normal course of business, the Company may agree to indemnify