Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 179

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 179
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 value of investment; and $1,705,000 of gain on change in fair value of warrant liabilities.

105 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 of property and equipment; and, $346,000 of non -cashinterest expense primarily associated with our notes payable. The approximately $25,425,000 of non -cashadjustments in the years ended December 31, 2023 included approximately: $1,430,000 of depreciation expense; $493,000 of non -cashamortization of operating lease right -of-useassets; $22,765,000 of loss on change in fair value of convertible notes; $240,000 of loss on change in fair value of warrant liabilities; $19,000 of non -cashshare -basedcompensation; and $435,000 of non -cashinterest expense primarily associated with our notes payable. Net Cash Used in Investing Activities During the six months ended June 30, 2025 and 2024, net cash provided by (used in) investing activities was approximately $55,000 and $(287,000), respectively, related primarily to the purchase of property and equipment, net of amounts