Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 432

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 432
---
 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.

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

F-90

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

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 to .

As described in more detail above, Intangible Assets and Goodwill related to the TTS acquisition are composed of the following as of December 31, 2024:

| Intangible Assets:                   |     | Life     |     | Cost |           |     | Accumulated  
 Amortization |        |     | Accumulated 
 Impairment  
 Charge      |   |     | Net |           |
|:-------------------------------------|:----|:---------|:----|:-----|----------:|:----|:-------------|-------:|:----|:------------|:--|:----|:----|----------:|
| Thinking Tree Trade Name             |     | 6 years  |     | $    |   250,000 |     | $            | 14,671 |     | $           | — |     | $   |   235,329 |
| Thinking Tree Customer Relationships |     | 10 years |     |      |   190,000 |     |              |  4,178 |     |             | — |     |     |   185,822 |
| Goodwill – Thinking Tree Acquisition |     | N/A      |     |      |   589,870 |     |              |    N/A |     |             | — |     |     |   589,870 |