Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 135

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 135
---
 in Investing Activities     |     |                     |    (27,000 | ) |     |      |   (173,000 | ) |     |                     |    (24,000 | ) |     |      |   (614,000 | ) |
| Net Cash Provided by Financing Activities |     |                     |  6,210,000 |   |     |      |  6,047,000 |   |     |                     |  8,358,000 |   |     |      |  9,929,000 |   |
| Net increase (decrease) in cash           |     | $                   |    (45,000 | ) |     | $    |   (194,000 | ) |     | $                   |   (146,000 | ) |     | $    |     18,000 |   |

Net Cash Used in Operating Activities During the nine months ended September 30, 2024 and 2023, net cash used in operating activities was approximately $(6,228,000) and $(6,068,000), respectively, resulting primarily from net income (loss) of approximately $5,426,000 and $(31,642,000), respectively, approximately $583,000 and $3,187,000, respectively, of cash was generated by changes in account balances of operating assets and liabilities, and non-cash adjustments to reconcile net income (loss) to net cash used in operating activities were approximately $(13,252,000) and $22,387,000 in the respective periods. The approximately $(13,252,000) of non-cash adjustments for the nine months ended September 30, 2024 consisted primarily of approximately: $(8,324,000) of gain on change in fair value of convertible notes; $(1,734,000) of gain on change in fair value of warrant liabilities; $(457,000) of gain on change in fair value of acquisition contingency liability; $(3,421,000) of gain on investment; $984,000 of depreciation expense; $365,000 of non-cash amortization of operating lease right-of-use assets; and, $313,000 of non-cash interest expense primarily associated with our notes payable. The approximately $22,387,000 of non-cash adjustments in the nine months ended September 30, 2023 included approximately: $1,106,000 of depreciation expense; $366,760 of non-cash amort