Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 89

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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2034). The 2019 Plan allows for the grant of ISOs, NQSOs, SARs, restricted stock, RSU awards, performance shares, and performance units to eligible participants for ten (10) years (until April 2029). The cost of awards under the 2019 Plan generally is based on the fair value of the award on its grant date. The maximum number of shares that may be utilized for awards under the 2019 Plan as of September 30, 2025 is 12,704.The following sets forth the outstanding ISOs and related activity for the nine months ended September 30, 2025:Options OutstandingNumber ofSharesWeighted- Average Exercise Price Per ShareWeighted- Average Remaining Contractual Term (in years)Aggregate Intrinsic ValueOutstanding at December 31, 2024300$3,157.80 0.86$0.00 Exercisable at December 31, 2024300$3,157.80 0.86$0.00 Forfeited(179)$3,157.80 Outstanding at September 30, 2025120$3,157.80 0.93$0.00 Exercisable at September 30, 2025120$3,157.80 0.93$0.00 Remaining unvested at September 30, 2025— $3,157.80 ISOs require a recipient to remain in service to the Company, ISOs generally vest ratably over periods ranging from one to four years from the vesting start date of the grant and vesting of ISOs ceases upon termination of service to the Company. Vested ISOs are exercisable for three months after the date of termination of service. The terms and conditions of any ISO shall comply in all respects with Section 422 of the Code, or any successor provision, and any applicable 

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Table of ContentsHeritage Distilling Holding Company, Inc.Notes to Condensed Consolidated Financial Statements(unaudited)NOTE 8 — STOCKHOLDERS’ EQUITY / (DEFICIT) (cont.)

regulations thereunder. The exercise price of each ISO is the fair market value of the Company’s stock on the applicable date of grant. The Company used the mean volatility estimate from Varga’s 409A valuation based on the median 5-year volumes of select peer companies. Fair value is estimated based on a combination