Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 292

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 292
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 either in cash or in shares of the Company’s common stock (based on closing          
 price 30 days post opening of such location).                                                                                           |

The fair value of property and equipment was estimated
by applying the cost approach, which estimates fair value using replacement or reproduction cost of an asset of comparable utility, adjusted
for loss in value due to depreciation and economic obsolescence. The fair value of the contingent earn-out was estimated using a discounted
cash flow approach, which included assumptions regarding the probability-weighted cash flows of achieving certain capacity development
milestones.

<div align='center'>F-33

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)</div>

NOTE 10 — ACQUISITION OF THINKING TREE SPIRITS (cont.)

Intangible assets were determined to meet the
criterion for recognition apart from tangible assets acquired and liabilities assumed. The fair values of intangible assets were estimated
based on various valuation techniques including the use of discounted cash flow analyses, and multi-period excess earnings valuation approaches,
which use significant unobservable inputs, or Level 3 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.

As described in more detail above, Intangible
Assets and Goodwill related to the TTS acquisition are composed of the following as of September 30, 2024:

| 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