Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 258

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 258
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, 2025 |   |     |     |                     For 
 the Year Ended December 
                31, 2024 |   |
|:------------------------------------------|:----|:----|-----------------------------:|:--|:----|:----|------------------------:|:--|
| Weighted Average Expected Volatility      |     |     |                           70 | % |     |     |                      70 | % |
| Expected Dividends                        |     |     |                           —% |   |     |     |                      —% |   |
| Weighted Average Expected Term (in years) |     |     |                            5 |   |     |     |                       5 |   |
| Risk-Free Interest Rate                   |     |     |                         4.12 | % |     |     |                    4.22 | % |

As of March 31, 2025 and December 31, 2024, in addition to the Contingent Legacy Shareholder Warrants discussed above, there were outstanding and exercisable warrants to purchase 915,383and 796,176, respectively, shares of common stock, As of March 31, 2025, the weighted-average remaining contractual term was 1.52years for the outstanding and exercisable warrants.

The Underwriting Agreement and the related warrants granted to the Underwriter equal 5% of the total proceeds raised in the Company’s November 25, 2024 initial public offering at an exercise price equal to the offering price, or warrants for 84,377shares at $ 4.00per share (the “Underwriter Warrants”). The number of Underwriter Warrants may increase by up to 15% (to warrants for 97,034shares at $ 4.00per share) if the Underwriter elects to utilize the overallotment rights of the Offering. As of May 19, 2025, the underwriter has not exercised any Underwriter Warrants.

Deferred Compensation —Beginning in May 2023, certain senior level employees elected to defer a portion of their salary until such time as the Company completed a successful public registration of its stock (which occurred on November 25, 2024). Upon success of the Company’s initial public offering, each employee was then to be paid their deferred salary plus a range of matching dollars in RSUs (under the new 2024 Plan noted above) for every $1 dollar of deferred salary. As of December 31,