Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 293

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 293
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 |     |      |   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 of a private
entity, or a transaction involving private companies with no public clearing price for their stock, certain methods, models and assumptions
are used to attempt to estimate or derive a fair market value. The statutory deadline has passed for any other Thinking Tree Spirits shareholders
to claim dissenter’s rights.

The amount being sought by the dissenters would
consume most, if not all, of the amount in stock paid in the transaction, and management believes the amount of compensation they are
seeking is too high.

Because this process creates uncertainty related
to how many net Heritage shares are owed to the remaining Thinking Tree Spirits shareholders, management has made the decision to place
any Heritage shares of stock that were to go to Thinking Tree Spirits shareholders in escrow until the matter is resolved. Likewise, any
make-up shares that we assumed were to be issued at the close of the Company’s initial public offering will also be held in escrow
until the same final value determination is made. This is to ensure Heritage is not double paying for the company in both shares and cash.

To the extent any amount of cash is due to the
three dissenters from Heritage, management will deduct that from the total amount of consideration that had