Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 282

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 282
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 a straight -linebasis for awards expected to vest. (See also Note 7: stock options; and, restricted stock units.) 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. During the six months ended June 30, 2025 and 2024, 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 7. 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. On June 24, 2025, the shareholders approved an increase in the number of shares authorized for issuance under the 2024 Plan to up to 5,000,000shares of common stock. As of June 30, 2025, the Company had made grants of 2,527,500shares of common stock under the 2024 Plan, and 2,472,500shares remained authorized for grant. Stock option awards generally vest on time -basedvesting schedules. Stock -basedcompensation expense is recognized based on the value of the portion of stock -basedpayment awards that is ultimately expected to vest and become exercisable during the period. The Company recognizes compensation expense for all stock -basedpayment awards made to employees, directors, and non -employeesusing a straight -linemethod, generally over a service period of four years. Advertising— The Company expenses costs relating to advertising either as costs are incurred or the first time the advertising takes place. Advertising expenses totaled $46,539 and $159,910 for the three months ended