Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 274

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 274
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Other                                         |     |                                   |   (1.12 | )% |     |      |  (0.64 | )% |
| Total                                                  |     |                                   |    1.27 | %  |     |      |   0.00 | %  |

The expense from and provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 21% to earnings before taxes, primarily because of the change in fair value of warrant and convertible notes, change in valuation allowance, incentive stock options / restricted stock units, other nondeductible items, state taxes, fair value adjustments, federal tax credits, and true-up adjustments.

NOTE 12 — LEASES

The Company has operating leases for corporate offices, warehouses, distilleries, tasting rooms and certain equipment which have been accounted for using ASC Topic 842. The Company’s operating lease terms include periods under options to extend or terminate the operating lease when it is reasonably certain that the Company will exercise that option in the measurement of its operating lease ROU assets and liabilities. The Company considers contractual-based factors such as the nature and terms of the renewal or termination, asset-based factors such as the physical location of the asset and entity-based factors such as the importance of the leased asset to the Company’s operations to determine the operating lease term. The Company generally uses the base, non-cancelable lease term when determining the operating lease ROU assets and lease liabilities. The ROU asset is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable in accordance with Accounting Standards Codification Topic 360, Property, Plant, and Equipment.

| F-43 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 12 — LEASES(cont.)

The following table presents the consolidated lease cost for amounts included in the measurement of lease liabilities for operating leases for the years ended December 31, 2024, and 2023, respectively:

SCHEDULE OF CONSOLIDATED LEASE COST

| Lease Cost:                         |     | 2024                      
 Years Ended  December 31, 
 2024                      |           |     | 2023 
 2023 |           |
|:------------------------------------|:----|:--------------------------|----------:|:----|:-----|----------:|
| Amortization of Right-of-Use Assets |     | $                         |   508,156 |     | $    |   492,