Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 59

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 its financial statements.0

NOTE 3 — INVENTORIES

Inventories consisted of the following:September 30,2025December 31,2024Finished Goods$444,981 $461,254 Work-in-Process1,073,154 936,181 Raw Materials762,135 1,074,132 Total Inventory$2,280,270 $2,471,567 

NOTE 4 — PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:Estimated Useful Lives (in years)September 30,2025December 31,2024Machinery and Equipment5 to 20$2,916,063 $3,478,062 Leasehold ImprovementsLease term6,930,584 6,930,585 Computer and Office Equipment3 to 102,086,612 2,460,632 Vehicles5272,910 274,559 Construction in ProgressN/A— 84,957 Total Property and Equipment12,206,169 13,228,795 Less: Accumulated Depreciation(8,096,249)(7,779,383)Property and Equipment, net of Accumulated Depreciation$4,109,920 $5,449,412 

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Consolidated Financial StatementsNOTE 4 — PROPERTY AND EQUIPMENT, NET (cont.)

Depreciation expense related to property and equipment for the three months ended September 30, 2025 and 2024 was 262,020 and 316,273 respectively; and for the nine months ended September 30, 2025 and 2024 was $832,476 and $984,329 respectively.

NOTE 5 — BORROWINGS

Borrowings of the Company consisted of the following:September 30,2025December 31,2024Silverview Loan$— $10,682,438 PPP Loan2,269,456 2,269,456 COVID19 TTS Loan22,354 39,247 City of Eugene304,817 389,875 Total Notes Payable2,596,627 13,381,016 Less: Debt Issuance Costs— (140,082) $2,596,627 $13,240,934 In March and September 2021, the Company executed