Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 269

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 269
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 be branded TTS and Heritage Distilling, or as a 
 Company approved sub-brand or collective brand, within a certain confidential retail location in Portland OR within 3 years, TTS  
 shareholders will receive an additional $395,000, payable at HDHC’s election either in cash or in shares of common stock (based   
 on closing price 30 days post opening of such location).                                                                          |

The fair value of property and equipment was estimated by applying the cost approach, which estimates fair value using replacement or reproduction cost of an asset of comparable utility, adjusted for loss in value due to depreciation and economic obsolescence. The fair value of the contingent earn-out was estimated using a discounted cash flow approach, which included assumptions regarding the probability-weighted cash flows of achieving certain capacity development milestones.

Intangible assets were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. The fair values of intangible assets were estimated based on various valuation techniques including the use of discounted cash flow analyses, and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. These valuation inputs included estimates and assumptions about forecasted future cash flows, long-term revenue growth rates, and discount rates. The fair value of the customer relationships intangible asset was determined using a discounted cash flow model that incorporates the excess earnings method and will be amortized on an accelerated basis over the projected pattern of economic benefits of approximately 6to 10years.

As described in more detail above, Intangible Assets and Goodwill related to the TTS acquisition are composed of the following as of December 31, 2024:

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS

| Intangible Assets:                   |     | Life     |     | Cost |           |     | Accumulated  Amortization |        |     | Accumulated  Impairment  Charge |   |     | Net |           |
|:-------------------------------------|:----|:---------|:----|:-----|----------:|:----|:--------------------------|-------:|:----|:--------------------------------|:--|:----|:----|----------:|
| Thinking Tree Trade Name             |     | 6 years  |     | $    |   250,000 |     | $                         | 14,671 |     | $                               | — |     | $   |   235,329 |
| Thinking Tree Customer Relationships |     | 10 years |