Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 307

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part II, Item 8
Chunk 307
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 presented:

Summary of Cash FlowsFor the Nine Months EndedSeptember 30,(rounded to $000’s)20252024Net Cash Used in Operating Activities$(7,822,000)$(6,228,000)Net Cash Provided by Investing Activities(20,947,000)(27,000)Net Cash Provided by Financing Activities29,990,000 6,210,000 Net increase / (decrease) in cash$1,222,000 $(45,000)

Net Cash Used in Operating Activities

During the nine months ended September 30, 2025 and 2024, net cash used in operating activities was approximately $(7,822,000) and $(6,228,000), respectively, resulting primarily from net income / (loss) of approximately $185,936,000 and $5,426,000, respectively. During the nine months ended September 30, 2025 and 2024, approximately $(2,238,000) and $583,000, respectively, of cash was (used) / generated by changes in operating account balances of operating assets and liabilities. Non-cash adjustments to reconcile net income / (loss) to net cash used in operating activities were approximately $(191,330,000) and $(12,238,000) in the respective periods. 

The approximately $(191,330,000) of changes in operating account balances of operating assets and liabilities for the nine months ended September 30, 2025 consisted primarily of approximately: $832,000 of depreciation expense; $304,000 of non-cash amortization of operating lease right-of-use assets; $481,000 of loss on disposal of property and equipment; and $(905,000) of non-cash interest expense primarily associated with our notes payable. 

The approximately $(12,238,000) of changes in operating account balances of operating assets and liabilities for the nine months ended September 30, 2024 included approximately: $984,000 of depreciation expense; $365,000 of non-cash amortization of operating lease right-of-use assets; $(8,324,000) of loss on change in fair value of convertible notes; and $313,000 of non-cash interest expense primarily associated with our notes payable, offset by: $3,421,000 of gain on change in fair value of investment; and $1,734,000 of gain on change in fair value of warrant liabilities. 

Net Cash Used in Investing Activities

During the