Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 430

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 430
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 monetary value of the obligation is predominantly based on a known fixed monetary amount. In September 2024, under the terms of the TTS stock sale, the true -upprovision for the $ 670,686purchase price payment in the form of common stock was extended through the settlement of the Thinking Tree Spirits Dissenters Rights Process (See below). Once the final determination is made on the amount owed to dissenters, if any, that amount will be deducted from the true -upamount and the resulting number of shares of common stock will be issued at the price per share of the common stock in the Company’s initial public offering (which occurred on November 25, 2024, at $ 4.00per share), at which time, the conversion price became fixed and the purchase price no longer qualified to be classified as a liability in accordance with ASC 480, and was reclassified to equity. The estimated fair value of the $ 127,076in estimated future contingent values (discussed also below) is recorded as a (long term) liability until such time as their obligation for potential payment becomes established as something more than zero and the payment number of shares is established, at which time, such future contingent payments will likewise be reclassified from liabilities to equity in accordance with ASC 480. F-89

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 10 — ACQUISITION OF THINKING TREE SPIRITS (cont.)

Allocation of the purchase price based on the estimated fair values of the acquired assets and liabilities assumed are as follows:

| Assets:                                                 |     | Amounts |           |   |
|:--------------------------------------------------------|:----|:--------|----------:|:--|
| Inventory                                               |     | $       |   143,423 |   |
| Other Current Assets/(Liabilities), net                 |     |         |    (3,068 | ) |
| Property and Equipment                                  |     |         |   127,600 |   |
| Intangible Asset – Thinking Tree Trade Name             |     |         |   250,000 |   |
| Intangible Asset – Thinking Tree Customer Relationships |     |         |   190,000 |   |
| Goodwill                                                |     |         |   589,870 |   |
| Total Assets                                            |     | $       | 1,297,825 |   |
| Liabilities:                                            |     |         |           |   |
| Accounts Payable