Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 328

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 328
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89 |
| Forfeited/Canceled/Expired                    |     |            |  (2,020 | ) |     | $                | 157.89 |
| Unvested and Outstanding at December 31, 2023 |     |            | 116,988 |   |     | $                | 157.89 |

During the years ended December 31, 2023 and 2022,
the Company recognized no stock-based compensation expense in connection with RSU awards granted under the plans. Compensation expense
for RSU awards is recognized upon meeting both the time-vesting condition and the triggering event condition. As of December 31, 2023,
based upon the grant date fair value of such RSU awards of $ per share, we would expect to recognize $ of previously unrecognized
compensation expense for RSU awards upon the settling of those RSUs and the expiration any associated lock up agreements entered into
in connection with this offering.

Equity-classified warrants — During
the year ended 2022, the Company issued warrants to purchase the Company’s common stock to certain broker companies as
part of consideration for services performed related to funding purposes. The warrants are exercisable, in whole or in part, into shares
of the Company’s common stock at an exercise price of $ per share at the option of the warrant holders, at any time. The Company
determined that warrants are equity instruments in accordance with ASC 815 — Derivatives and Hedging. The fair
value of the warrants at the date of the issuance was $ and was recorded as part of “General and Administrative” expense
in the consolidated statements of operations and an increase in additional paid in capital in the consolidated balance sheets.

F-69 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 9 — STOCKHOLDERS’ EQUITY (cont.)

The Company estimates the fair values of equity
warrants using the Black-Scholes option-pricing model on the date of issuance. During the year ended December 31, 2023, the Company did
not issue any warrants to purchase the Company’s common stock.

|                                           |     | For the Years Ended 
        December 31, |   |     |      |       |   |
|                                           |     |                2023 |   |     | 2022 |       |   |
| Weighted Average Expected Volatility      |     |                     | — |     |      | 44.32 |