Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 158

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 158
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     |   |  730,000 |   |
| Tasting Room                               |     |                          |   144,000 |     |   |   119,000 |     |   |   25,000 |   |
| Leases and Rentals                         |     |                          |   740,000 |     |   |   712,000 |     |   |   28,000 |   |
| Sales and Marketing Expenses               |     |                          |   503,000 |     |   | 1,006,000 |     |   | (503,000 | ) |
| Other                                      |     |                          | 1,019,000 |     |   |   842,000 |     |   |  177,000 |   |
|                                            |     | $                        | 6,039,000 |     | $ | 5,938,000 |     | $ |  101,000 |   |

•The approximately $356,000 decrease in personnel expense was primarily a result of a decrease of five full -timemarketing and retail administration staff in May 2023. •The approximately $730,000 of non -cashshare -basedcompensation expense recognized in 2024 for sales and marketing personnel included deferred compensation matching RSUs to certain personnel of approximately $511,000, and historical RSU recognition at IPO $219,000. •The approximately $25,000 increase in leases and rentals expenses was primarily due to the additional cost associated with our new tasting room location in Eugene, Oregon from the Thinking Tree Spirits acquisition offset by a decrease in rent expenses from closure of our Ballard, Washington retail location in March 2023. •The approximately $503,000 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 and the ending of two large sports sponsorships that were put under contract before COVID -19shutdowns 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 -commercedistribution services and travel; software for an improved point -of