Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 342

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 342
---
25, 2024 closing of the Company’s initial public offering). For the period ended December 31, 2024, upon the consummation of the initial public offering on November 25, 2024, the Company recorded an expense of $ 2,684,995at the fair grant values per RSU for the total 245,589then vested awards.

| 195 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 9 — STOCKHOLDERS’ EQUITY / (DEFICIT)(cont.)

Equity-Based (Non-Cash) Compensation —The Company recorded equity-based (non-cash) compensation for employees (personnel) and consultants for the years ended December 31, 2024 and 2023 as follows:

SCHEDULE OF EQUITY-BASED (NON-CASH) COMPENSATION FOR EMPLOYEES (PERSONNEL) AND CONSULTANTS

|                                                |     | Years Ended December 31, 
 2024                     |      2024 |     | 2023 |   2023 |
|:-----------------------------------------------|:----|:-------------------------|----------:|:----|:-----|-------:|
| Production / Cost of Sales                     |     | $                        |   178,140 |     | $    |      — |
| Sales and Marketing                            |     |                          |   729,592 |     |      |      — |
| General and Administrative                     |     |                          | 2,414,097 |     |      |  6,028 |
| Subtotal Employee Compensation                 |     |                          | 3,321,829 |     |      |  6,028 |
| Professional Fees (General and Administrative) |     |                          | 1,570,281 |     |      | 12,566 |
| Total Non-Cash Share-Based Compensation        |     | $                        | 4,892,110 |     | $    | 18,594 |

Equity-classified warrants —The Company estimates the fair values of equity warrants using the Black-Scholes option-pricing model on the date of issuance with Monte Carlo simulations to determine the probability of warrants being exercisable.

Contingent Legacy Shareholder Warrants— On October 30, 2024 the Company issued warrants to purchase common stock that became contingently exercisable upon the closing of an initial public offering (which occurred on November 25, 2024