Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 270

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 270
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 inputs, as defined by the fair value hierarchy. These valuation inputs included
estimates and assumptions about forecasted future cash flows, long-term revenue growth rates, and discount rates. The fair value of the
customer relationships intangible asset was determined using a discounted cash flow model that incorporates the excess earnings method
and will be amortized on an accelerated basis over the projected pattern of economic benefits of approximately 6 to 10 years.

| Intangible Assets:                   |     | Life     |     | Cost |           |     | Accumulated  
 Amortization |        |     | Accumulated 
 Impairment  
 Charge      |   |     | Net |           |
|:-------------------------------------|:----|:---------|:----|:-----|----------:|:----|:-------------|-------:|:----|:------------|:--|:----|:----|----------:|
| Thinking Tree Trade Name             |     | 6 years  |     | $    |   490,000 |     | $            | 20,539 |     | $           | — |     | $   |   469,461 |
| Thinking Tree Customer Relationships |     | 10 years |     |      |   360,000 |     |              | 11,444 |     | $           | — |     | $   |   348,556 |
| Goodwill – Thinking Tree Acquisition |     | N/A      |     |      |   636,997 |     |              |    N/A |     | $           | — |     | $   |   636,997 |
| Total                                |     |          |     | $    | 1,486,997 |     | $            | 31,983 |     | $           | — |     | $   | 1,455,014 |

There were no intangible assets or goodwill as
of December 31, 2023.

Thinking Tree Spirits Dissenters’ Rights
Process: In July 2024 three Thinking Tree Spirits shareholders served their notice to exercise dissenters’ rights under Oregon law.
Dissenters’ rights statutes allow a party opposed to certain transactions to demand payment in cash for the value of their interests
held rather than receive shares in the resulting entity. Parties can either agree upon a negotiated value or a dissenter who does not
believe they are being fairly compensated for the value of their interests may seek a judicially determined value. In the case