Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 264

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 264
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 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 nine months ended
September 30, 2024 and the year ended December 31, 2023. As of September 30, 2024, 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.

|                                |     | For the Nine Months Ended 
 September 30,             
 2024                      |   |     | 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 to four years from 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 the Company’s 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.

F-30 Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 9 — STOCKHOLDERS’ EQUITY (cont.)

|                                                |     | Restricted