Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 28

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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Par ValueNumber of SharesPar ValueBeginning Balance December 31, 202319,074$2 — $— $31,422,018 $(74,844,476)$(43,422,456)Acquisition of Thinking Tree Spirits2,547— — — — — — Preferred Stock Issued—— 494,840 49 1,680,468 — 1,680,517 Shares Repurchased(1)— — — (3,690)— (3,690)Warrants Issued—— — — 2,330,000 — 2,330,000 Warrants Exercised474— — — — — — Effect of Reverse Split, Fractional Shares and Rounding1— — — — — — Net Income / (Loss)—— — — — 5,426,409 5,426,409 Ending Balance September 30, 202422,095 $2 494,840 $49 $35,428,796 $(69,418,067)$(33,989,220)

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Heritage Distilling Holding Company, Inc.

Condensed Consolidated Statements of Cash Flows(unaudited)

For the Nine Months EndedSeptember 30,20252024Net Income / (Loss)$185,935,769 $5,426,409 Adjustments to Reconcile Net Income / (Loss) to Net Cash Used in Operating Activities:Depreciation Expense832,476 984,329 Amortization of operating lease right-of-use assets304,217 365,088 Loss on disposal of property and equipment481,008 37,154 Non-cash Warrant Issued1,133,663 — Change in Fair Value of Intangible Digital Assets(245,841,410)— Gain on Investment— (3,421,222)Change in Fair Value of Convertible Notes— (8,324,198)Change in Fair Value of Warrant Liabilities— (1,734,308)Change in Fair Value of Contingency Liabilities62,424 (457,127)Non-cash Interest Expense(905,048)312,571 Non-cash Shares in lieu of Services125,000 — Non