Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 268

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 268
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 |   |
| 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 |   |

| F-39 |

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 31, 2024, the Company recorded estimated fair values of $ 847,762for payments in the form of Company common stock (including: $ 670,686in common stock of the Company; $ 50,000of post-closing accounting true-ups; and $ 127,076in estimated future contingent payments). The acquisition was recorded at estimated fair values, based on the payments made, and a fair value probability applied to the contingent earn out payments. The fair value of the acquisition will be re-measured for each subsequent reporting period until resolution of the contingent earn out payments, and any increases or decreases in fair value will be recorded in the income statement as an operating loss or gain. The recorded fair value of the acquisition was reviewed as of December 31, 2024, with no change in fair value deemed necessary.

Under the terms of the TTS acquisition, TTS shareholders will be eligible to receive contingent earn out payments from the Company through February 21, 2027 of:

| ● | Up                                                                                                                                
 to $800,000 per year (payable in Company common stock) in each of the first 3 years post acquisition with the final closing date  
 on December 31, 2026 (for an aggregate of up to $2,400,000), calculated as $1.00 worth of Company common stock for every $1.00 of 
 revenue of TTS brands and activities that exceed the previous year’s TTS associated revenue. Shortfalls in years 1 and 2 to       
 be caught up in years 2 and/or 3, if revenues are then sufficient.                                                                |

| ● | $395,000                                                                                                                          
 if TTS is successful in securing an agreement for a new tasting room location, to