Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 120

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 120
---
 or a portion of the loan could be forgiven if the proceeds are used in accordance with the terms of the program within the eight or 24-week measurement period. The loan terms required the principal balance and 1% interest to be paid back within two years of the date of the note. In June 2021, our bank approved forgiveness of the loan of $3,776,100. During the year ended of December 31, 2021, the forgiveness was partially rescinded by the SBA and we recognized $1,506,644 as other income in the consolidated statements of operations, resulting in $2,269,456 in PPP debt. Under the terms of the PPP loan, we have also recorded interest on the PPP loan at the rate of 1%, for a total of $107,255 as of December 31, 2024. We are currently in the process of disputing a portion if not all of the difference. The terms of the agreement state that we have 18-24 months to repay the PPP loan. Following the date of the forgiveness, the remaining balance of the PPP loan of $2,269,456 is expected to be repaid in the next 12 months with our general assets.

| 82 |

Cash Flows

The following table sets forth a summary of cash flows for the periods presented:

| Summary                                   
 of Cash Flows                             |     | Three               
 Months Ended  March 
 31,  (rounded       
 to $000’s)          
 2025                |            |   |     | 2024 |            |   |     | Years           
 ended  December 
 31, (rounded    
 to $000’s)      
 2024            |             |   |     | 2023 |            |   |
|:------------------------------------------|:----|:--------------------|-----------:|:--|:----|:-----|-----------:|:--|:----|:----------------|------------:|:--|:----|:-----|-----------:|:--|
| Net Cash Used in Operating Activities     |     | $                   | (2,031,000 | ) |     | $    | (2,660,000 | ) |     | $               | (11,216,000 | ) |     | $    | (8,480,000 | ) |
| Net Cash Used in Investing Activities     |     |                     |     65,000 |   |     |      |      5,000