Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024441
Chunk: 109

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 109
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|:--|:----|:--|-----------:|:--|
| Net Cash Used in Operating Activities     |     | $                            | (3,544,000 | ) |     | $ | (5,383,000 | ) |
| Net Cash Provided by Investing Activities |     |                              |     55,000 |   |     |   |   (287,000 | ) |
| Net Cash Provided by Financing Activities |     |                              |  3,222,000 |   |     |   |  5,744,000 |   |
| Net increase / (decrease) in cash         |     | $                            |   (267,000 | ) |     | $ |     75,000 |   |

Net Cash Used in Operating Activities

During the six months ended June 30, 2025 and 2024, net cash used in operating activities was approximately $(3,544,000) and $(5,383,000), respectively, resulting primarily from net income / (loss) of approximately $(10,328,000) and $8,859,000, respectively. During the six months ended June 30, 2025 and 2024, approximately $2,669,000 and $(717,000), respectively, of cash was (used) / generated by changes in operating account balances of operating assets and liabilities. Non-cash adjustments to reconcile net income / (loss) to net cash used in operating activities were approximately $4,115,000 and $(13,525,000) in the respective periods.

The approximately $4,115,000 of changes in operating account balances of operating assets and liabilities for the six months ended June 30, 2025 consisted primarily of approximately: $570,000 of depreciation expense; $201,000 of non-cash amortization of operating lease right-of-use assets; $9,000 of loss on disposal of property and equipment; and, $207,000 of non-cash interest expense primarily associated with our notes payable.

The approximately $(13,525,000) of changes in operating account balances of operating assets and liabilities for the six months ended June 30, 2024 included approximately: $655,000 of depreciation expense; $257,000 of non-cash amortization of operating lease right-of-use assets; $(9,045,000) of loss on change in fair value of convertible notes; and $163,000 of non-cash interest expense primarily associated