Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 182

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 182
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 ended June 30, 2025 consisted primarily of approximately: $3,128,000 of non -cashshare -basedcompensation; $570,000 of depreciation expense; $201,000 of non -cashamortization of operating lease right -of -useassets; $9,000 of loss on disposal of property and equipment; and, $207,000 of non -cashinterest expense primarily associated with our notes payable. The approximately $(13,525,000) of changes in operating account balances of operating assets and liabilities for the six months ended June 30, 2024 included approximately: $655,000 of depreciation expense; $257,000 of non -cashamortization of operating lease right -of -useassets; $(9,045,000) of loss on change in fair value of convertible notes; and $163,000 of non -cashinterest expense primarily associated with our notes payable, offset by: $3,421,000 of gain on change in fair value of investment; and $1,705,000 of gain on change in fair value of warrant liabilities.

107 During the years ended December 31, 2024 and 2023, net cash used in operating activities was approximately $11,216,000 and $8,480,000, respectively, resulting primarily from net income (loss) of approximately $710,000 and $(36,798,000), respectively. During the years ended December 31, 2024 and 2023, approximately $(1,022,000) and $2,893,000, respectively, of cash was (used)/generated by changes in account balances of operating assets and liabilities. Non -cashadjustments to reconcile net loss to net cash used in operating activities were approximately $(10,904,000) and $25,425,000 in the respective periods. The approximately $(10,904,000) of non -cashadjustments for the year ended December 31, 2024 consisted primarily of approximately: $14,028,000 of gain on change in fair value of convertible notes; $737,000 of gain on change in fair value of warrant liabilities; $3,421,000 of gain on investment; offset by $4,892,000 of non -cashshare -basedcompensation; $1,285,000 of depreciation expense; $508,000 of non -cashamortization of operating lease right -of -useassets; $242,000 of loss on disposal