Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 119

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 119
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 EBITDA                                      |     | $                   | (2,213,000 | ) |     | $    |  1,374,000 |   |     | $                                      |   4,540,000 |   |     | $    | (32,834,000 | ) |
| Change in fair value of convertible notes   |     |                     |          — |   |     |      |    571,000 |   |     |                                        | (14,028,000 | ) |     |      |  22,765,000 |   |
| Change in fair value of warrant liabilities |     |                     |          — |   |     |      |   (430,000 | ) |     |                                        |    (737,000 | ) |     |      |     240,000 |   |
| Investment (Gain) / Loss                    |     |                     |          — |   |     |      | (3,421,000 | ) |     |                                        |  (3,421,000 | ) |     |      |           — |   |
| Share-Based Compensation                    |     |                     |          — |   |     |      |          — |   |     |                                        |   4,892,000 |   |     |      |      19,000 |   |
| Adjusted EBITDA                             |     | $                   | (2,213,000 | ) |     | $    | (1,906,000 | ) |     | $                                      |  (8,754,000 | ) |     | $    |  (9,810,000 | ) |

| 79 |

Liquidity and Capital Resources

We have prepared our financial statements assuming we will continue as a going concern. Since our inception, we have incurred net losses and experienced negative cash flows from operations as we have invested in equipment, location buildout, inventory buildout (including laying down barrels of whiskey for aging) and marketing to grow our presence and brands. To date, our primary sources of capital have been private and public placements of equity securities, term loans, and convertible debt. During the three months ended March 31, 2025 and 2024, we had net income/(loss) of approximately $(3,033,000) and $453,000, respectively (of which, approximately $0 and $3,280,000, respectively, stemmed from the decrease in fair value of certain convertible