Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 149

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 149
---
, net cash used in operating activities was approximately $(6,228,000) and $(6,068,000), respectively, resulting primarily from
net income (loss) of approximately $5,426,000 and $(31,642,000), respectively, approximately $583,000 and $3,187,000, respectively, of
cash was generated by changes in account balances of operating assets and liabilities, and non-cash adjustments to reconcile net income
(loss) to net cash used in operating activities were approximately $(13,252,000) and $22,387,000 in the respective periods.

The approximately $(13,252,000) of non-cash adjustments
for the nine months ended September 30, 2024 consisted primarily of approximately: $(8,324,000) of gain on change in fair value of convertible
notes; $(1,734,000) of gain on change in fair value of warrant liabilities; $(457,000) of gain on change in fair value of acquisition
contingency liability; $(3,421,000) of gain on investment; $984,000 of depreciation expense; $365,000 of non-cash amortization of operating
lease right-of-use assets; and, $313,000 of non-cash interest expense primarily associated with our notes payable.

The approximately $22,387,000 of non-cash adjustments
in the nine months ended September 30, 2023 included approximately: $1,106,000 of depreciation expense; $366,760 of non-cash amortization
of operating lease right-of-use assets; 20,231,000 of loss on change in fair value of convertible notes; $346,000 of loss on change in
fair value of warrant liabilities; and $321,000 of non-cash interest expense primarily associated with our notes payable.

<div align='center'>91</div>

During the years ended December 31, 2023
and 2022, net cash used in operating activities was approximately $(8,480,000) and $(9,297,000), respectively, resulting primarily from
net losses of approximately $(36,798,000) and $(12,268,000), respectively. During the years ended December 31, 2023 and 2022,
approximately $2,893,000 and $2,002,000, respectively, of cash was generated by changes in account balances of operating assets and liabilities.
Non-cash adjustments to reconcile net loss