Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 371

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 371
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 the amendment and the specific ratio of the reverse stock split, without further approval or authorization of the Company’s stockholders. On October16, 2025, the Board approved, and on November5, 2025 the Company effected, a 1 -for-20reverse stock split. All share and per share numbers included in these financial statements as of and for all periods presented also reflect the effect of that stock split unless otherwise noted. F-62 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 1 — DESCRIPTION OF OPERATIONS AND BASIS OF PRESENTATION (cont.) All share and per share numbers presented in these financial statements have been rounded individually. As a result, totals may reflect the effect of differences between: aggregating the individually rounded component numbers; and the rounding of the total of the individual component numbers. In cases where rounding occurred, the amount of the rounding difference is not material and are considered to be insignificant. The aggregate effect of rounding down fractional shares and the respective payout of paid in capital is reported in the aggregate where significant, including the condensed consolidated statements of stockholders’ equity. Liquidity and Going Concern— The accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern. The Company’s recurring net losses, negative working capital, increased accumulated deficit and stockholders’ deficit, raise substantial doubt about its ability to continue as a going concern. During the year ended December 31, 2024, the Company recorded net income of approximately $ 0.7million (of which approximately $ 14.8million of the net income stemmed from gain on investment and the decrease in fair value of certain convertible notes and warrants) and reported net cash used in operations of approximately $ 11.2million. On December 31, 2024, the accumulated deficit was approximately $ 74.1million and the stockholders’ equity was approximately $ 0.8million. Excluding the approximately $ 14.8million from the 2024 increase in fair value (approximately $ 6.0million inception to date increase in fair value) of the aforementioned convertible notes and warrants: the Company would have incurred a 2024 net loss of approximately $ 14.1million; and, at December 31, 2024, the accumulated deficit would have been approximately $ 68.2million and the stockholders’ deficit would have been approximately $ 6.8million. In connection with these