Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 161

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 161
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DA and adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, (rounded to $000’s)Nine Months Ended September 30, (rounded to $000’s)EBITDA Analysis2025202420252024Net Income / (Loss)$196,264,000 $(3,433,000)$185,936,000 $5,426,000 Add (Deduct):Income Tax49,427,000 — 49,430,000 9,000 Interest Expense498,000 662,000 1,616,000 1,897,000 Depreciation and Amortization262,000 $329,000 570,000 655,000 EBITDA$246,451,000 $(2,442,000)$237,552,000 $7,987,000 Change in Fair Value of Intangible Digital Assets(245,841,000)— (245,841,000)— Gain on Extinguishment of Debt(1,673,000)— (1,673,000)— Change in fair value of convertible notes— (29,000)— (8,324,000)Change in fair value of warrant liabilities— 721,000 — (1,734,000)Change in Fair Value of Contingency Liability62,000 — 62,000 (457,000)Investment (Gain) / Loss— — — (3,421,000)Adjusted EBITDA$(1,001,000)$(1,750,000)$(9,900,000)$(5,949,000)

Liquidity and Capital Resources

We have prepared our condensed consolidated financial statements assuming we will continue as a going concern. While we have incurred net losses and have incurred net losses and experienced negative cash flows from operations since our inception as we have invested in equipment, location buildout, inventory buildout (including laying down barrels of whiskey for aging) and marketing to grow our presence and brands,our August 15, 2025 PIPE transaction fundamentally changed and improved our asset base, resulted in greatly reduced debts and liabilities, improved our liquidity profile substantially and afforded us the opportunity to initiate our new validator segment, which will generate ongoing recurring revenue from staking activities.At September 30, 2025, we had outstanding aged payables to