Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 347

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 2
Chunk 347
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 by Public Relations of approximately $222,000 recognized in the three months ended September 30, 2025. These expenses were not recognized in the comparable three months ended September 30, 2024.

•The approximately $746,000 increase in other expense is primarily the result of: sales and write offs of equipment and other from down sizing our footprint of $475,000, director fees of $109,000, directors and 

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officers insurance of $87,000, and building and property repairs from down sizing our footprint of $84,000 in the three months ended September 30, 2025, for which there was; sales of equipment of $2,000, no director fees, director and officers insurance of $6,000, and building and property repairs of $2,000 expenses in the comparable three months ended September 30, 2024

Interest Expense

Interest expense decreased by approximately $164,000 to approximately $498,000 for the three months ended September 30, 2025, compared to an expense of approximately $662,000 for the three months ended September 30, 2024. The decrease in interest expense, period over period,included: approximately $193,000 in Property Lease Interest; and, an approximately $316,000 decrease in other interest expense, primarily as a result of the settlement of the Silverview loan in August 2025. Additionally, factoring and Channel Partner loans were paid in 2024 precipitating a decrease in interest expense of approximately $62,000. 

Gain on Extinguishment of Debt

In conjunction with the settlement of the Silverview loan in August 2025 approximately $2,611,000 was recognized as gain on settlement. The approximately $12,620,000 in principal and interest due on the loan was paid with approximately $7,046,000 in cash and 200,000 warrants (with a value of approximately $2,964,000).

Gain on Intangible Digital Assets

Change in fair value of intangible digital assets resulted in a gain of approximately $245,841,000 for the three months ended September 30, 2025 (based on a closing price on September 30, 2025 of $8.54 per $IP Token), compared to $0 for the three months ended September 30, 2024, as we began recognizing fair value adjustments on $IP Tokens in the current quarter. The gain was primarily attributable to favorable market movements in the quoted