Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 349

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 349
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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.

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

SCHEDULE OF RECOGNIZED IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED

| 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 and Other Current Liabilities          |     | $       |    42,739 |   |
| SBA Loan                                                |     |         |   389,875 |   |
| Other Non-Current Liabilities                           |     |         |    17,449 |   |
| Total Liabilities                                       |     |         |   450,063 |   |
| Total Purchase Consideration                            |     | $       |   847,762 |   |

| 198 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

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

In conjunction with the acquisition, for the quarter ended March