Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 326

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 326
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     |           |  6,178 |   |     | $              | 157.89 |     |             | 1.86 |     | $               | — |
| Exercisable at December 31, 2023        |     |           |  6,178 |   |     | $              | 157.89 |     |             | 1.86 |     | $               | — |
| Remaining unvested at December 31, 2023 |     |           |      — |   |     | $              | 157.89 |     |             |      |     |                 |   |

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 regulations thereunder. The Company used the mean volatility estimate from Carta’s 409A valuation based on the median 5-year
volumes of select peer companies. Fair value is estimated based on a combination of shares being sold at $ up through February of
2019 and the most recent 409A completed when these ISOs were issued in April of 2018 valuing the Company’s stock at $ per
share. No ISOs may be granted more than ten (10) years after the earlier of the approval by the Board, or the stockholders, of the
2019 Plan.

There were no grants in the years ended December
31, 2023 and 2022. As of December 31, 2023, the Company had $ of unrecognized compensation expense related to ISOs expected to vest over
a weighted average period of years. The weighted average remaining contractual life of outstanding and exercisable ISOs is years.

F-68 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 9 — STOCKHOLDERS’ EQUITY (cont.)

|                                |     | For the Twelve Months Ended 
 December 31,                |   2023 |     |   |   2022 |
|:-------------------------------|:----|:----------------------------|-------:|:----|: