Company: IPST
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001788230-25-000062
Chunk: 253

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 253
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$409,000 $499,000 $(90,000)Recruiting and retention5,000 5,000 — Professional Fees200,000 287,000 (87,000)Leases and Rentals143,000 173,000 (30,000)Depreciation249,000 259,000 (10,000)Other302,000 224,000 78,000 $1,308,000 $1,447,000 $(139,000)

•The approximately $90,000 decrease in wages and related expenses was primarily the result of additional matching RSU compensation on a noncash basis related to deferred compensation during the three months ended March 31, 2024 with no such deferred compensation or matching program for the three months ended March 31, 2025. Beginning in May 2023, certain senior level employees elected to defer a portion of their salary until such time as we completed a successful public offering of our common stock (which occurred on November 25, 2024), when the employees would then be paid their respective deferral, plus RSUs or stock options (under the existing 2019 Plan and the new 2024 Plan discussed in Notes 2 and 7 of our condensed consolidated financial statements for the three months ended March 31, 2025 and 2024). 

•The approximately $30,000 decrease in leases and rentals was primarily the result of moving from a large warehouse in Eugene, Oregon to a smaller warehouse starting in January 2025. 

•The approximately $78,000 increase in other general and administrative expenses included accumulative smaller changes in utilities, travel, general insurance, public company related insurance and other administrative expenses, including board compensation.

•The approximately $87,000 decrease in professional fees expense included:

Professional FeesThree Months Ended March 31, (rounded to $000’s)Change20252024Accounting and Valuation Services$15,000 $163,000 $(148,000)Legal32,000 73,000 (41,000)Consulting— 38,000 (38,000)Other153,000 13,000 140,000 $200,000 $287,000 $(87,000)

A majority of our professional fees expense in the three months ended March 31, 2025 and 2024 were incurred as a result of: general preparedness of our financial reporting and capital