Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 367

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 2
Chunk 367
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 not expect to be performing for the foreseeable future as we focus on higher margin activities.

In an ideal scenario, a producer would be at 100% utilization and producing high margin items exclusively. Knowing this, we are examining operations, assets and our existing real estate footprint to drive better utilization and reduce overhead with the goal of driving down unabsorbed overhead and decreasing unused asset capacity. 

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The following table presents a reconciliation of net income / (loss) to EBITDA and adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, (rounded to $000’s)Nine Months Ended September 30, (rounded to $000’s)EBITDA Analysis2025202420252024Net Income / (Loss)$196,264,000 $(3,433,000)$185,936,000 $5,426,000 Add (Deduct):Income Tax49,427,000 — 49,430,000 9,000 Interest Expense498,000 662,000 1,616,000 1,897,000 Depreciation and Amortization262,000 $329,000 570,000 655,000 EBITDA$246,451,000 $(2,442,000)$237,552,000 $7,987,000 Change in Fair Value of Intangible Digital Assets(245,841,000)— (245,841,000)— Gain on Extinguishment of Debt(1,673,000)— (1,673,000)— Change in fair value of convertible notes— (29,000)— (8,324,000)Change in fair value of warrant liabilities— 721,000 — (1,734,000)Change in Fair Value of Contingency Liability62,000 — 62,000 (457,000)Investment (Gain) / Loss— — — (3,421,000)Adjusted EBITDA$(1,001,000)$(1,750,000)$(9,900,000)$(5,949,000)

Liquidity and Capital Resources

We have prepared our condensed consolidated financial statements assuming we will continue as a going concern. While we have incurred net losses and have incurred net losses and experienced negative cash flows from operations since our inception as we have invested in equipment