Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 175

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 175
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 |         (14,028,000 | ) |     |      |  22,765,000 |   |
| Change in fair value of warrant liabilities |     |      |                         — |   |     |      | (1,705,000 | ) |     |      |            (737,000 | ) |     |      |     240,000 |   |
| Investment (Gain)/Loss                      |     |      |                         — |   |     |      | (3,421,000 | ) |     |      |          (3,421,000 | ) |     |      |           — |   |
| Share-Based Compensation                    |     |      |                         — |   |     |      |          — |   |     |      |           4,892,000 |   |     |      |      19,000 |   |
| Adjusted EBITDA                             |     | $    |                (8,636,000 | ) |     | $    | (3,869,000 | ) |     | $    |          (8,754,000 | ) |     | $    |  (9,810,000 | ) |

Liquidity and Capital Resources We have prepared our financial statements assuming we will continue as a going concern. While we have incurred net losses and experienced negative cash flows from operations since our inception 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, our recent private placement of pre -fundedwarrants changed and improved our asset and liquidity profile substantially. At June 30, 2025, we had outstanding aged payables to vendors in the aggregate amount of approximately $6,881,000, inclusive of accrued amounts to service providers who were providing services for us related to our 2024 IPO, along with $11,502,000 in secured debt and $6,733,000 in unsecured debt. In connection with our recent private placement offering, we reached agreements with our aged vendors that accounted for the bulk of our outstanding payables, along with negotiated payments to our senior secured creditors of cash and prefunded warrants in exchange for elimination of the debt owed to them. The result was an overall reduction in our outstanding current and long -termpayables, and secured and unsecured debt, of $19.3million at the close of the private placement offering. We also renegotiated