Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 344

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 344
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 |   |     | $              | 3,157.80 |     |            0.93 |     | $               | 0.00 |
| Remaining unvested at September 30, 2025 |     |         — |   |     | $              |        — |     |                 |     |                 |      |

F-39

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 8 — STOCKHOLDERS’ EQUITY/(DEFICIT) (cont.)

ISOs require a recipient to remain in service to the Company, ISOs generally vest ratably over periods ranging from one to four years from the vesting start date of the grant and vesting of ISOs ceases upon termination of service to the Company. Vested ISOs are exercisable for three months after the date of termination of service. The terms and conditions of any ISO shall comply in all respects with Section 422 of the Code, or any successor provision, and any applicable regulations thereunder. The exercise price of each ISO is the fair market value of the Company’s stock on the applicable date of grant. The Company used the mean volatility estimate from Varga’s 409A valuation based on the median -year volumes of select peer companies. Fair value is estimated based on a combination of shares being sold at $ up through February of 2019 and the most recent 409A completed when these ISOs were issued in April of 2018 valuing the Company’s stock at $ per share. ISOs may be granted more than ten (10) years after the earlier of the approval by the Board, or the stockholders, of the 2019 Plan.

There were grants in the nine months ended September 30, 2025 and the year ended December 31, 2024. As of September 30, 2025, the Company had of unrecognized compensation expense related to ISOs expected to vest over a weighted average period of years. The weighted average remaining contractual life of outstanding and exercisable ISOs is years.

Restricted stock units — The RSU awards granted in 2019 under the 2019 Plan were granted at the fair market value of the Company’s stock on the applicable date of grant. RSU awards generally vest ratably over periods ranging from one to four years from the grant’s start date. Upon termination of service to the Company, vesting of RSU awards ceases, and most