Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 341

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 341
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 average remaining contractual life of outstanding and exercisable ISOs is 1.86years.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

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

The following table presents stock-based compensation expense included in the consolidated statements of operations related to ISOs issued under the 2019 Plan:

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS RELATED TO ISOs ISSUED

|                                |     | 2024                                     
 For the Twelve Months Ended December 31, 
 2024                                     |   |     | 2023 
 2023 |        |
|:-------------------------------|:----|:-----------------------------------------|:--|:----|:-----|-------:|
| Cost of Sales                  |     | $                                        | — |     | $    |      — |
| Sales and Marketing            |     |                                          | — |     |      |      — |
| General and Administrative     |     |                                          | — |     |      | 18,595 |
| Total Share-based Compensation |     | $                                        | — |     | $    | 18,595 |

Restricted stock units —The RSU awards granted in 2019 under the 2019 Plan were granted at the fair market value of the Company’s stock on the applicable date of grant. RSU awards generally vest ratably over periods ranging from one 1to four yearsfrom the grant’s start date. Upon termination of service to the Company, vesting of RSU awards ceases, and most RSU grants are forfeited by the participant, unless the award agreement indicates otherwise. The majority of RSU awards are “double trigger” and both the service-based component, and the liquidity-event component (including applicable lock-up periods) must be satisfied prior to an award being settled. Upon settlement, the RSU awards are paid in shares of common stock. The Company recognizes the compensation expense for the restricted stock units based on the fair value of the shares at the grant date amortized over the stated period for only those shares that are not subject to the double trigger.

The following table summarizes the RSU activity for the years ended December 31, 2024 and 2023:

SUMMARY OF RSU’s

|                                               |     | Restricted  Stock  Units |          |   |     | Weighted Average  Exercise Price