Company: IPST
Filing Date: 2025-12-23
Form Type: 424B3
Source: 0001213900-25-125341
Chunk: 168

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-23
Form: 424B3
Chunk 168
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     |      |                   — |   |     |      | (3,421,000 | ) |     |      |          (3,421,000 | ) |     |      |           — |   |
| Adjusted EBITDA                                   |     | $    |         (12,951,000 | ) |     | $    | (5,949,000 | ) |     | $    |          (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 August15, 2025 PIPE transaction fundamentally changed and improved our asset base, resulted in greatly reduced debts and liabilities, improved our liquidity profile substantially, and afforded us the opportunity to initiate our new validator segment, which will generate ongoing recurring revenue from staking activities. 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 approximately $3.8million at the close of the private placement offering. We also renegotiated with our two largest real estate landlords to use less space in exchange for reduced rent on our two most expensive properties starting in August and September 2025. The result of the paydown in payables and debt, along with the reduction in rents, equates to more than $2million in annual rent and interest savings, or approximately $200,000 per month in less spend, thereby reducing our cash burn significantly. In addition, in September 2025, we established our $IP Token validator system to begin earning yield from the staking of a significant portion of our 53.2million $IP Tokens. While our validator operations are in their early stages, we are receiving significant and regular recuring revenue from those services based on the current Story Network activity and the value of the $IP Token in the market. While blockchain activities and market pricing dynamics are always subject to change