Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 307

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 307
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 and 2024, the Company did notgrant 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 fouryears. Advertising— The Company expenses costs relating to advertising either as costs are incurred or the first time the advertising takes place. Advertising expenses totaled $ 46,539and $ 159,910for the three months ended June 30, 2025 and 2024, respectively; and $ 235,834and $ 245,187for the six months ended June 30, 2025 and 2024, respectively, and were included in “Sales and marketing” in the condensed consolidated statements of operations. F-17 Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Income taxes— The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 740, “ Income Taxes” for establishing and classifying any tax provisions for uncertain tax positions. The Company’s policy is to recognize and include accrued interest and penalties related to unrecognized tax benefits as a component of income tax expenses. The Company is not aware