Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 113

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 113
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 contract 
 before COVID-19 shutdowns went into effect (and could not be cancelled), which contracts         
 were extended through negotiations in 2022 and 2023, and that were not renewed nor expensed      
 in 2024 or beyond.                                                                               |

| ● | The                                                                                              
 approximately $177,000 increase in other sales and marketing expenses included increases         
 in: professional fees for contracted Chief Revenue Officer services and e-commerce distribution  
 services and travel; software for an improved point-of-sale software upgrade; retail tasting     
 room location utilities and insurance; and a net increase in other sales and marketing expenses. |

| ● | Removing                                                                                    
 the approximately $730,000 in non-cash share-based compensation expense recognized in 2024  
 for RSU grant awards for members of the Sales and Marketing team from the expenses for 2024 
 would result in a total cash expense under Sales and Marketing Expense of $5,309,000 for    
 2024, $629,000 less that the cash expenditures for 2023.                                    |

| 75 |

General and Administrative Expenses

General and administrative expenses were approximately $11,006,000 for the year ended December 31, 2024, compared to approximately $7,477,000 for the year ended December 31, 2023. This approximately $3,529,000 increase included:

|                                              | General and Administrative Expense | Years Ended  December 31,  (rounded to $000’s) |       2024 |     |   |      2023 |     |   |    Change |   |
|:---------------------------------------------|:-----------------------------------|:-----------------------------------------------|-----------:|:----|:--|----------:|:----|:--|----------:|:--|
| Personnel - Cash Wages and Related Expense   |                                    | $                                              |  2,056,000 |     | $ | 1,955,000 |     | $ |   101,000 |   |
| Personnel - Share-Based Compensation         |                                    |                                                |  2,414,000 |     |   |     6,000 |     |   | 2,408,000 |   |
| Recruiting and retention                     |                                    |                                                |     20,000 |     |   |   163,000 |     |   |  (143,000 | ) |
| Professional Fees                            |                                    |                                                |  2,195,000 |     |   | 2