Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 120

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 120
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 the next 12 months with our general assets.

| 71 |

Cash Flows

The following table sets forth a summary of cash flows for the periods presented:

| Summary of                     
 Cash Flows                     |     | Years                                  
 ended December 31, (rounded to $000’s) 
 2024                                   |             |   |     | 2023 |            |   |
|:-------------------------------|:----|:---------------------------------------|------------:|:--|:----|:-----|-----------:|:--|
| Net Cash Used                  
 in Operating Activities        |     | $                                      | (11,216,000 | ) |     | $    | (8,480,000 | ) |
| Net Cash Used in Investing     
 Activities                     |     |                                        |    (101,000 | ) |     |      |    (24,000 | ) |
| Net Cash Provided by Financing 
 Activities                     |     |                                        |  11,693,000 |   |     |      |  8,358,000 |   |
| Net                            
 increase / (decrease) in cash  |     | $                                      |     376,000 |   |     | $    |   (146,000 | ) |

Net Cash Used in Operating Activities

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-cash adjustments 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-cash adjustments 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-cash share-based compensation; $1,285,