Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 152

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 152
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 other expenditures, including repayment of notes payable of approximately $893,000, deferred transaction
costs associated with our terminated business combination of approximately $147,000, repurchase of common stock of approximately $13,000,
and approximately $50,000 in proceeds from an exercised warrant.

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Supplemental Cash Flow Information

During the nine months ended September 30, 2024,
supplemental cash flow activity included approximately: $1,585,000 of cash paid for interest expense; $1,266,000 of Series A Preferred
Stock that was issued in exchange for inventory and barrels; $720,000 of Series A Preferred Stock that was issued in exchange for notes
payable; $290,000 of unpaid deferred transaction costs that were recorded as a deferred expense on the balance sheet and recorded in accounts
payable and other current liabilities; and $43,000 of unpaid property and equipment additions. For the nine months ended September 30,
2023, supplemental cash flow activity included approximately: $1,572,000 of cash paid for interest expense; $405,000 of cash paid for
amounts included in the measurement of lease liabilities; $903,000 of unpaid deferred transaction costs that were recorded as a deferred
expense on the balance sheet and recorded in accounts payable and other current liabilities; and $184,000 of unpaid property and equipment
additions.

During the year ended December 31, 2023, supplemental
non-cash cash flow activity included approximately: $2,091,000 of cash paid for interest expense; $290,000 of ROU assets obtained in exchange
for new operating leases; $194,000 of unpaid property additions; and $1,020,000 of unpaid deferred transaction costs that were recorded
as a deferred expense on the balance sheet and recorded in accounts payable and other current liabilities. For the year ended December 31,
2022, supplemental cash flow activity included approximately: $1,694,000 of cash paid for interest expense; $4,219,000 for recording right-of-use
assets obtained in exchange for new operating lease liabilities upon adoption of ASC 842; and $562,000 of deferred transaction costs
associated with a now-terminated business combination agreement that were recorded as a deferred expense on the balance sheet and recorded
in accounts payable and other current liabilities.

Off-Balance Sheet Arrangements

We had no obligations, assets or liabilities that
would be considered off-balance sheet