Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 320

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 320
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 a reconciliation of net income / (loss) to EBITDA and adjusted EBITDA for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, (rounded to $000’s)Six Months Ended June 30, (rounded to $000’s)EBITDA Analysis2025202420252024Net Income / (Loss)$(7,295,000)$8,407,000 $(10,328,000)$8,859,000 Add (Deduct):Income Tax3,000 9,000 3,000 9,000 Interest Expense595,000 635,000 1,119,000 1,236,000 Depreciation and Amortization274,000 $335,000 570,000 655,000 EBITDA$(6,423,000)$9,386,000 $(8,636,000)$10,759,000 Change in fair value of convertible notes— (9,616,000)— (9,045,000)Change in fair value of warrant liabilities— (1,275,000)— (1,705,000)Investment (Gain) Loss— — — (3,421,000)Adjusted EBITDA$(6,423,000)$(1,962,000)$(8,636,000)$(3,869,000)

65

Liquidity and Capital Resources

We have prepared our condensed consolidated financial statements assuming we will continue as a going concern. Since our inception, we have incurred net losses and experienced negative cash flows from operations 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. To date, our primary sources of capital have been private and public placements of equity securities, term loans, and convertible debt. During the six months ended June 30, 2025 and 2024, we had net income / (loss) of approximately $(10,328,000) and $8,859,000, respectively (of which, approximately $0 and $14,628,000, respectively, stemmed from the (increase)/decrease in fair value of certain convertible notes, warrants and contingencies, and gain on investment). We expect to incur additional losses and higher operating expenses for the foreseeable future as we continue to invest in inventory,