Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 291

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 291
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 Liabilities                                       |     |         |   450,063 |   |
| Total Purchase Consideration                            |     | $       | 1,304,889 |   |

In conjunction with the acquisition, for the quarter
ended March 31, 2024, the Company recorded estimated fair values of $1,254,889 for payments in the form of Company common stock (including
$670,686 in common stock of the Company and $584,203 in estimated future contingent payments). The acquisition was recorded at estimated
fair values, based on the payments made, and a fair value probability applied to the contingent earn out payments. The fair value of the
acquisition will be re-measured for each subsequent reporting period until resolution of the contingent earn out payments, and any increases
or decreases in fair value will be recorded in the income statement as an operating loss or gain. The recorded fair value of the acquisition
was reviewed as of June 30, 2024, with a decrease in valuation for the contingent earn out payments to $127,076 and decrease in fair
value recorded in the income statement as an operating gain of $457,127. The recorded fair value of the acquisition was reviewed as of
September 30, 2024, with no change in fair value deemed necessary.

Under the terms of the TTS acquisition, TTS shareholders
will be eligible to receive contingent earn out payments from the Company through February 21, 2027 of:

| ● | Up to $800,000 per year (payable                                                                                                          
 in Company common stock) in each of the first 3 years post acquisition with the final closing date on December 31, 2026 (for an           
 aggregate of up to $2,400,000), calculated as $1.00 worth of Company common stock for every $1.00 of revenue of TTS brands and activities 
 that exceed the previous year’s TTS associated revenue. Shortfalls in years 1 and 2 to be caught up in years 2 and/or                     
 3, if revenues are then sufficient.                                                                                                       |

| ● | $395,000 if TTS is successful                                                                                                           
 in securing an agreement for a new tasting room location, to 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