Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 424

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 424
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 all respects with Section 422 of the Code, or any successor provision, and any

F-85

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 9 — STOCKHOLDERS’ EQUITY/(DEFICIT) (cont.)

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. No ISOs may be granted more than ten () years after the earlier of the approval by the Board, or the stockholders, of the 2019 Plan.

There were no grants in the years ended December 31, 2024 and 2023. As of December 31, 2024, 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.

The following table presents stock-based compensation expense included in the consolidated statements of operations related to ISOs issued under the 2019 Plan:

|                                |     | For the Twelve Months Ended 
 December 31,                
 2024                        |   |     | 2023 |        |
|:-------------------------------|:----|:----------------------------|:--|:----|:-----|-------:|
| Cost of Sales                  |     | $                           | — |     | $    |      — |
| Sales and Marketing            |     |                             | — |     |      |      — |
| General and Administrative     |     |                             | — |     |      | 18,595 |
| Total Share-based Compensation |     | $                           | — |     | $    | 18,595 |

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