Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 273

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 273
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 not all of the difference. The terms of the agreement state that we have 18-24 months to repay the PPP loan. Following the date of the forgiveness, the remaining principal balance of the PPP loan of $2,269,456 is expected to be repaid in the next 12 months with our general assets.

Cash Flows

The following table sets forth a summary of cash flows for the periods presented:

Summary of Cash FlowsFor the Six Months EndedJune 30, (rounded to $000’s)20252024Net Cash Used in Operating Activities$(3,544,000)$(5,383,000)Net Cash Provided by Investing Activities55,000 (287,000)Net Cash Provided by Financing Activities3,222,000 5,744,000 Net increase / (decrease) in cash$(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 

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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