Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 139

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 139
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000 |   |
| Sales and Marketing Expenses               |     |                             |    82,000 |     |   |   181,000 |     |        | (99,000 | ) |
| Other                                      |     |                             |   208,000 |     |   |   231,000 |     |        | (23,000 | ) |
|                                            |     | $                           | 1,973,000 |     | $ | 1,298,000 |     | $      | 675,000 |   |

•The approximately $647,000 of personnel — share -basedcompensation in the three months ended June30, 2025, for which there was no such expense in the comparable three months ended June30, 2024 included; $511,000 grant of matching non -cashRSU compensation related to deferred compensation. (See Notes 2 and 7 of our condensed consolidated financial statements for the three months ended June30, 2025 and 2024), plus additional RSU grants employee recognitions of $136,000. •The approximately $99,000 decrease in sales and marketing expenses included: an increase in digital advertising production expense to drive DtC sales of our highest margin spirits brands, offset by decreases in sponsorships and print advertising as we shifted to a new third -partye -commerceplatform. •The approximately $23,000 decrease in other sales and marketing expenses stems from decreased deals, discounts, rebates and incentives offered to wholesale distributors for low margin products and the ending of a contract for an outside sales consultant as of December31, 2024. General and Administrative Expenses General and administrative expenses were approximately $4,424,000 for the three months ended June 30, 2025, compared to approximately $1,747,000 for the three months ended June 30, 2024. This approximately $2,677,000 increase included:

| General and Administrative Expense                  
 2025                                                |     | Three Months Ended June 30, 
 (rounded to $000’s)         |      2024 |     |   |    Change |     |   |           |   |
|:----------------------------------------------------|:----|:----------------------------|----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Personnel – Cash Wages and Related Non-Cash Expense |     | $                           |   504,000 |     | $ |