Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 178

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 178
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 Activities |     |                     |  3,222,000 |      |     |   |  5,744,000 |      |     |                     |  11,693,000 |      |     |   |  8,358,000 |   |
| Net increase/(decrease) in cash           |     | $                   |   (267,000 | )    |     | $ |     75,000 |      |     | $                   |     376,000 |      |     | $ |   (146,000 | ) |

Net Cash Used in Operating Activities During the six months ended June 30, 2025 and 2024, net cash used in operating activities was approximately $(3,544,000) and $(5,383,000), respectively, resulting primarily from net income/(loss) of approximately $(10,328,000) and $8,859,000, respectively. During the six months ended June 30, 2025 and 2024, approximately $2,669,000 and $(717,000), respectively, of cash was (used)/generated by changes in operating account balances of operating assets and liabilities. Non -cashadjustments to reconcile net income/(loss) to net cash used in operating activities were approximately $4,115,000 and $(13,525,000) in the respective periods. The approximately $4,115,000 of changes in operating account balances of operating assets and liabilities for the six months ended June 30, 2025 consisted primarily of approximately: $3,128,000 of non -cashshare -basedcompensation; $570,000 of depreciation expense; $201,000 of non -cashamortization of operating lease right -of-useassets; $9,000 of loss on disposal of property and equipment; and, $207,000 of non -cashinterest expense primarily associated with our notes payable. The approximately $(13,525,000) of changes in operating account balances of operating assets and liabilities for the six months ended June 30, 2024 included approximately: $655,000 of depreciation expense; $257,000 of non -cashamortization of operating lease right -of-useassets; $(9,045,000) of loss on change in fair value of convertible notes; and $163,000 of non -cashinterest expense primarily associated with our notes payable, offset by: $3,421,000 of gain on change in fair