Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 268

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 268
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 contingent payments will likewise be reclassified from liabilities to equity in accordance with ASC 480. F-32 Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 10 — ACQUISITION OF THINKING TREE SPIRITS (cont.)

| Assets:                                                 |     | Amounts |           |   |
|:--------------------------------------------------------|:----|:--------|----------:|:--|
| Inventory                                               |     | $       |   143,423 |   |
| Other Current Assets/(Liabilities), net                 |     |         |    (3,068 | ) |
| Property and Equipment                                  |     |         |   127,600 |   |
| Intangible Asset – Thinking Tree Trade Name             |     |         |   490,000 |   |
| Intangible Asset – Thinking Tree Customer Relationships |     |         |   360,000 |   |
| Goodwill                                                |     |         |   636,997 |   |
| Total Assets                                            |     | $       | 1,754,952 |   |
| Liabilities:                                            |     |         |           |   |
| Accounts Payable and Other Current Liabilities          |     | $       |    42,739 |   |
| SBA Loan                                                |     |         |   389,875 |   |
| Other Non-Current Liabilities                           |     |         |    17,449 |   |
| Total 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 $ for payments in the form of Company common stock (including
$ in common stock of the Company and $ 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 $