Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 134

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 134
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 a result of operating as a public company, including expenses necessary to comply with the rules and regulations applicable to companies listed on a national securities exchange and related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, as well as increased expenses for general and director and officer insurance, investor relations, directors fees and other administrative and professional services. In addition, we expect to incur additional costs as we hire additional personnel and enhance our infrastructure to support the anticipated growth of our business. We expect that the one -timelarge costs associated with preparing our initial public offering will not need to be recurring expenses, allowing us to focus on baseline costs. 76 As of November 25, 2025, we had outstanding restricted stock units (“RSUs”) that, upon vesting, will settle into an aggregate of 125,000 shares of common stock based upon the grant date with a fair value of $14.56 per unit. We recognized an aggregate of $2,684,395 of previously -unrecognizedcompensation expense for RSU awards upon completion of our IPO. Included in the previously -unrecognizedcompensation expense are an aggregate of 11,726 RSUs to employees, directors and consultants that the Board of Directors approved in May 2024, with a fair grant value of $80.00 per unit. These RSUs contained a double trigger and, upon grant, were deemed to have met their time -basedservice requirements for vesting. Interest Expense Interest expenses include cash interest accrued on our secured and unsecured debt, if any, cash interest and non -cashinterest paid or accrued on our notes payable, if any, interest on leased equipment or assets, and costs and interest on credit cards. Change in Fair Value of Intangible Digital Assets Our intangible digital assets consist solely of $IP Tokens in our digital treasury. These assets are remeasured to fair value at the end of each reporting period, with changes recognized in Change in Fair Value of Intangible Digital Assets on the condensed consolidated statements of operations. For the nine months ended September30, 2025, we recognized a fair value gain of approximately $245,841,000, driven by market fluctuations in the $IP Token. As of September30, 2025, the fair value of intangible digital assets on our condensed consolidated balance sheet was $455,648,074 using the closing price of the $IP Token of $8.54 on that date. We continue to hold substantially all of our $IP Tokens for investment and intend to