Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 322

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 322
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, an assessment of the credit position of the Company, market yields of companies with
similar credit risk at the date of valuation estimation, and calibrated rates based on the fair value relative to the original issue price
from the Convertible Notes.

|                                        |     | December 31, 2023 |     |               |     | December 31, 2022 |     |          |
|:---------------------------------------|:----|:------------------|:----|:--------------|:----|:------------------|:----|---------:|
| Significant Unobservable Input         |     | Input             
 Range             |     | Weighted      
 Average       |     | Input             
 Range             |     | Weighted 
  Average |
| Discount Rate                          |     | 48.5%             |     | 48.5%         |     | 47.2% – 52.2%     |     |    48.7% |
| Expected Term (in years)               |     | 0.122 – 1.081     |     | 0.122 – 1.081 |     | 0.250 – 1.197     |     |    0.565 |
| Probability Scenarios                  |     |                   |     |               |     |                   |     |          |
| IPO                                    |     | 70%               |     |               |     | 5% – 20%          |     |          |
| deSPAC                                 |     | 0%                |     |               |     | 20% – 25%         |     |          |
| Default/Dissolution/Forced Liquidation |     | 20%               |     |               |     | 45% – 60%         |     |          |
| Held to Maturity                       |     | 10%               |     |               |     | 0%                |     |          |

F-65 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 8 — FAIR VALUE MEASUREMENT (cont.)

|                                        |     | December 31, 2023 |     |              |
|:---------------------------------------|:----|:------------------|:----|:-------------|
| Significant Unobservable Input         |     | Input             
 Range             |     | Weighted     
 Average      |
| Discount Rate                          |     | 54%               |     | 91.3%        |
| Expected Term (in