Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 322

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 322
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:|:--|:----|:------------------|--------------:|:--|
| Significant Unobservable Input         |     | Input  Range      |               |   |     | Weighted  Average |               |   |
| Discount Rate                          |     |                   |            54 | % |     |                   |          91.3 | % |
| Expected Term (in years)               |     |                   | 0.125 – 0.667 |   |     |                   | 0.125 – 0.667 |   |
| Probability Scenarios                  |     |                   |               |   |     |                   |               |   |
| IPO                                    |     |                   |            70 | % |     |                   |               |   |
| deSPAC                                 |     |                   |             0 | % |     |                   |               |   |
| Default/Dissolution/Forced Liquidation |     |                   |            20 | % |     |                   |               |   |
| Held to Maturity                       |     |                   |            10 | % |     |                   |               |   |

| F-60 |

<div align='center'>Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements</div>

NOTE 8 — FAIR VALUE MEASUREMENT(cont.)

Valuation of Warrant Liabilities— The fair value of the warrant liabilities as of November 25, 2024 (the date of the Company’s initial public offering — which was the remaining prerequisite for the unconditional conversion of the warrant liabilities into equity) was based on the Company’s initial public offering price of $4.00 per share. The fair value of the warrant liabilities at issuance and at each reporting period (through November 25, 2024) was estimated based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The warrants are free-standing instruments and determined to be liability-classified in accordance with ASC 480. The Company used the PWERM and the Monte Carlo Simulation (“MCS”) to incorporate estimates and assumptions concerning the Company’s prospects and market indications into the models to estimate the value of the warrants. The most significant estimates and assumptions used as inputs in the PWERM and MCS valuation techniques impacting the fair value of the warrant liabilities until their unconditional conversion at the initial public offering price of $4.00 per share on November 25, 2024, are the timing and probability of IPO