Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 338

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 338
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-vesting condition and the triggering event condition. As of June 30, 2025, restricted stock units (“RSUs”) were forfeited. In May 2024, RSUs were voluntarily terminated, and were issued, leaving issued RSUs to settle at a grant value of $ per unit. In May 2024, the Board of Directors approved awarding RSUs to employees, directors and consultants with a fair grant value of $ per unit. These RSUs contain a double trigger and, upon grant, were deemed to have met their time-based service requirements for vesting. They will settle on the expiration of the Market Stand-off provision in the 2019 stock incentive plan (or May 24, 2025, which is from the November 25, 2024 closing of the Company’s initial public offering).

The following table presents stock-based compensation expense included in the condensed consolidates statements of operations related to RSUs issued under the 2024 Plan:

|                                |     | For the Six Months Ended 
 June 30,                 
 2025                     |           |     | 2024 |   |
|:-------------------------------|:----|:-------------------------|----------:|:----|:-----|:--|
| Cost of Sales                  |     | $                        |   121,107 |     | $    | — |
| Sales and Marketing            |     |                          |   647,295 |     |      | — |
| General and Administrative     |     |                          | 2,359,406 |     |      | — |
| Total Share-based Compensation |     | $                        | 3,127,807 |     | $    | — |

Equity-classifiedwarrants — The Company estimates the fair values of equity warrants using the Black-Scholes option-pricing model on the date of issuance with Monte Carlo simulations to determine the probability of warrants being exercisable.

Contingent Legacy Shareholder Warrants — On October 30, 2024, the Company issued warrants to purchase common stock that became contingently exercisable upon the closing of an initial public offering (which occurred on November 25, 2024), at the price per share of the Company’s initial public offering (or $ per share) to its common shareholders of record as of May 31, 2023 (the “Contingent Legacy Shareholder Warrants”), that will

F-32

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial