Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 28

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 (Loss)—— — — — 8,859,341 8,859,341 Ending Balance June 30, 2024441,935 $72 183,000 $18 $33,249,500 $(65,985,135)$(32,735,545)

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 Six Months EndedJune 30,20252024Net Income / (Loss)$(10,328,125)$8,859,341 Adjustments to Reconcile Net Income / (Loss) to Net Cash Used in Operating Activities:Depreciation Expense570,456 655,262 Amortization of operating lease right-of-use assets200,727 257,470 Loss on disposal of property and equipment8,661 27,311 Gain on Investment— (3,421,222)Change in Fair Value of Convertible Notes— (9,044,748)Change in Fair Value of Warrant Liabilities— (1,705,020)Change in Fair Value of Contingency Liabilities— (457,127)Non-cash Interest Expense207,282 163,318 Non-cash Share-based Compensation3,127,807 — Changes in Operating Assets and Liabilities:Accounts Receivable428,182 254,581 Inventory156,115 (522,335)Other Current Assets(35,971)112,611 Other Long Term Assets(6,900)— Accounts Payable1,902,131 339,235 Other Current Liabilities441,625 (593,197)Operating Lease Liabilities(216,457)(308,089)Net Cash Used in Operating Activities(3,544,467)(5,382,609)Cash Flow from Investing ActivitiesProceeds from Purchase of Thinking Tree Spirits— 5,090 Purchase of Property and Equipment(28,596)(292,000)Proceeds from Sale of Asset83,902 — Net Cash Provided by / (Used in)  Investing Activities55,306 (286,910)Cash Flow from Financing ActivitiesProceeds from Notes Payable— 438,914 Proceeds from Whiskey Notes (including proceeds from related party Whiskey Notes of $0 and $1,433,000 for the six