Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 350

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 350
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             |      |     |                 |   |
| Outstanding at December 31, 2022        |     |           |  8,137 |   |     | $              | 157.89 |     |             | 2.78 |     | $               | — |
| Exercisable at December 31, 2022        |     |           |  7,847 |   |     | $              | 157.89 |     |             | 2.76 |     | $               | — |
| Forfeited                               |     |           | (1,959 | ) |     | $              | 157.89 |     |             |      |     |                 |   |
| Outstanding at December 31, 2023        |     |           |  6,178 |   |     | $              | 157.89 |     |             | 1.86 |     | $               | — |
| Exercisable at December 31, 2023        |     |           |  6,178 |   |     | $              | 157.89 |     |             | 1.86 |     | $               | — |
| Remaining unvested at December 31, 2023 |     |           |      — |   |     | $              | 157.89 |     |             |      |     |                 |   |

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 Carta’s 409A valuation based on the median 5-year
volumes of select peer companies. Fair value is estimated based on a combination of shares being sold at $157.89 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 $