Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 386

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 386
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Cost of Sales” within the consolidated statements of operations, which totaled $ 232,073and $ 230,230for the years ended December 31, 2024 and 2023, respectively. Shipping and handling costs— Shipping and handling costs of $ 248,005and $ 165,961were included in “Cost of Sales” within the consolidated statements of operations for the years ended December 31, 2024 and 2023, respectively. Stock -based compensation— The Company measures compensation for all stock -basedawards at fair value on the grant date and recognizes compensation expense over the service period on a straight -linebasis for awards expected to vest. The fair value of stock options granted is estimated on the grant date using the Black -Scholesoption pricing model. The Company uses a third -partyvaluation firm to assist in calculating the fair value of the Company’s stock options. This valuation model requires the Company to make assumptions and judgment about the variables used in the calculation, including the volatility of the Company’s common stock and assumed risk -freeinterest rate, expected years until liquidity, and discount for lack of marketability. Forfeitures are accounted for and are recognized in calculating net expense in the period in which they occur. Stock -basedcompensation from vested stock options, whether forfeited or not, is not reversed. In the past the Company granted stock options to purchase common stock with exercise prices equal to the value of the underlying stock, as determined by the Company’s Board of Directors on the date the equity award was granted. The Board of Directors determines the value of the underlying stock by considering several factors, including historical and projected financial results, the risks the Company faced at the time, the preferences of the Company’s stockholders, and the lack of liquidity of the Company’s common stock. During the years ended December 31, 2024 and 2023, the Company did not grant any stock option awards. The Company has not granted any stock options since 2019, when the Company’s 2018 Plan was terminated in favor of the 2019 Plan, under which, the Company has granted RSUs. See Note 9. Upon the closing of the Company’s initial public offering (which occurred on November 25, 2024), the 2024 Equity Incentive Plan (the “2024 Plan”) became effective, authorizing the issuance of up to 2,500,000shares of common stock. Stock option awards generally vest on time -basedvest