Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 168

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 168
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”) under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), section 7(a)(36) of the Small Business Act for $3,776,100. The proceeds from the PPP loan could only be used to retain workers and maintain payroll or make mortgage interest, lease and utility payments and all or a portion of

100

the loan could be forgiven if the proceeds are used in accordance with the terms of the program within the eight or 24 -weekmeasurement period. The loan terms required the principal balance and 1% interest to be paid back within two years of the date of the note. In June 2021, our bank approved forgiveness of the loan of $3,776,100. During the year ended of December 31, 2021, the forgiveness was partially rescinded by the SBA and we recognized $1,506,644 as other income in the consolidated statements of operations, resulting in $2,269,456 in PPP debt. Under the terms of the PPP loan, we have also recorded interest on the PPP loan at the rate of 1%, for a total of $124,229 as of September30, 2025. We are currently in the process of disputing a portion if not all of the difference. The terms of the agreement state that we have 18 -24months to repay the PPP loan. Following the date of the forgiveness, the remaining principal balance of the PPP loan of $2,269,456 is expected to be repaid in the next 12 months with our general assets. As part of our acquisition of Thinking Tree Spirits we acquired a HUD/City of Eugene loan obligation with a balance of $389,875. We have since paid down $85,058 of that loan, leaving a balance of $304,817 as of September30, 2025. That loan is scheduled to be paid off by May1, 2028 unless paid off sooner. It carries an annual interest rate of 5%. Cash Flows The following table sets forth a summary of cash flows for the periods presented:

| Summary of Cash Flows                     
 2025                                      |     | For the Nine Months Ended 
 September 30,             
 (rounded to $000’s)       |             | 2024 |     |   |            | 2024 |     | Years ended         
 December 31,        
 (rounded to $000’s) |             | 2023 |     |   |            |   |
|:--------------------------------