Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 170

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 170
---
 $245,841,000 of change in fair value of Intangible Assets;$49,427,000 of non -cashdeferred income tax expense; $1,134,000 of non -cashwarrant issues; $3,051,000 of non -cashshare -basedcompensation; $832,000 of depreciation expense; $304,000 of non -cashamortization of operating lease right -of-useassets; $481,000 of loss on disposal of property and equipment; and, $905,000 of non -cashinterest 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 -cashamortization of operating lease right -of-useassets; and $313,000 of non -cashinterest expense primarily associated with our notes payable, offset by: $8,324,000 of gain on change in fair value of convertible notes; $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. 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.

101 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;