Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 127

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 127
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 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, we abandoned work on the proposed SPAC 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” for further information.

|                                   | SPAC Related Professional Fees | Years Ended December 31, 
 (rounded to $000’s)      |      2023 |     |   |    2022 |     |   |   Change |   |
|:----------------------------------|:-------------------------------|:-------------------------|----------:|:----|:--|--------:|:----|:--|---------:|:--|
| Accounting and Valuation Services |                                | $                        |   151,000 |     | $ |       — |     | $ |  151,000 |   |
| Legal                             |                                |                          |   983,000 |     |   |       — |     |   |  983,000 |   |
| Investment Banking                |                                |                          |         — |     |   | 323,000 |     |   | (323,000 | ) |
|                                   |                                | $                        | 1,134,000 |     | $ | 323,000 |     | $ |  811,000 |   |

Interest Expense Interest expense decreased by approximately $84,000 to approximately $2,527,000 for the year ended December 31, 2023, compared to approximately $2,611,000 for the year ended December 31, 2022. The decrease was primarily due to changes in the interest rate under our $12,250,000 secured credit facility, which interest rate was 15% during the year ended December 31, 2023, compared to 16.5% for the year ended December 31, 2022. Income Taxes The provision for income taxes for the years ended December 31, 2023 and 2022 was immaterial, primarily as we were in a net loss position for those periods. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP