Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 25

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 25
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 However, sustained or increasing inflation could adversely impact our operations, results of operations and financial condition. 12 Small Business Association (“SBA”) Paycheck Protection Program (“PPP”) loan repayment risk and timing. In April 2022, we were advised we may have received a PPP loan over the amount we were qualified for in Round 1 of that program, and in April 2023, we received a similar notification for our Round 2 PPP loan. Those loans were part of the federal government’s relief package in response to the COVID -19pandemic. The SBA had forgiven both loans as we had followed all rules associated with the use of proceeds under that program. It is possible that the SBA may determine that we must repay some of the amounts we received as PPP loans. If a demand is made by the SBA for some repayment, it is unclear at this time what the payment term length would be for such repayment and there is a risk that the SBA may require immediate payment or payment on a timeline that is shorter than we anticipate. Any demand for repayment could reduce our working capital and available cash in a way that adversely impacts on our ability to execute our business and operating plans. If the SBA demands that we repay any amounts owed more than the amount of our available cash, it could force us to raise new capital under less than favorable terms that could be dilutive to stockholders, or to take on debt that could have higher borrowing costs. As of June 30, 2025, the total exposure for these two loans was $2,269,456, plus accrued interest of $112,851. Certain sales under our equity line of credit may adversely affect our business, market perception and stock price. Certain sales of our common stock under our equity line of credit could adversely impact our company. On January 23, 2025, we entered into the ELOC Purchase Agreement with the ELOC Investor pursuant to which we, subject to the restrictions and satisfaction of the conditions in the ELOC Purchase Agreement, have the right, but not the obligation, to sell to the ELOC Investor, and the ELOC Investor is obligated to purchase, up to $15.0 million of newly -issuedshares of our common stock. On July 21, 2025, we and our placement agents commenced the confidential marketing of our common stock and the Pre -FundedWarrants to a limited number of institutional accredited investors and qualified institutional buyers. Between July 21, 2025 and July 30,