Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 134

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 134
---
%. Principal of $16,528 plus interest is payable monthly. We had an option to prepay the Channel Partners Loan with a prepayment discount of 5.0%. As of both September 30, 2024 and December 31, 2023, the outstanding balance of the 2022 Channel Partners Loan was $0 (having been paid off in April 2023). In April 2023, we entered into a new secured business loan and security agreement with Channel Partners Capital, LLC (the “2023 Channel Partners Loan”) for an aggregate borrowing capacity of $250,000, of which $47,104 of proceeds were used to pay off the 2022 Channel Partners Loan. The 2023 Channel Partners Loan matured on October 5, 2024 and accrues interest at a fixed rate of 13.34% per annum. A principal payment of $16,944 plus interest was payable monthly. We had an option to prepay the 2023 Channel Partners Loan with a prepayment discount of 5.0%. As of September 30, 2024 and December 31, 2023, the outstanding balance of the 2023 Channel Partners Loan was $16,569 and $149,824, respectively. Subsequent to September 30, 2024, we paid the remaining balance due under the 2023 Channel Partners Loan in October 2024. Cash Flows The following table sets forth a summary of cash flows for the periods presented:

| Summary of Cash Flows                     |     | Nine Months Ended   
 September 30,       
 (rounded to $000’s) 
 2024                |            |   |     | 2023 |            |   |     | Years Ended         
 December 31,        
 (rounded to $000’s) 
 2023                |            |   |     | 2022 |            |   |
|:------------------------------------------|:----|:--------------------|-----------:|:--|:----|:-----|-----------:|:--|:----|:--------------------|-----------:|:--|:----|:-----|-----------:|:--|
| Net Cash Used in Operating Activities     |     | $                   | (6,228,000 | ) |     | $    | (6,068,000 | ) |     | $                   | (8,480,000 | ) |     | $    | (9,297,000 | ) |
| Net Cash Used