Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 352

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 352
---
 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.

The following table summarizes the RSU activity
for the years ended December 31, 2023 and 2022:

|                                               |     | Restricted 
 Stock      
 Units      |         |   |     | Weighted Average 
 Exercise Price   
 Per Share        |        |
|:----------------------------------------------|:----|:-----------|--------:|:--|:----|:-----------------|-------:|
| Unvested and Outstanding at December 31, 2021 |     |            | 105,727 |   |     | $                | 157.89 |
| Granted                                       |     |            |  14,015 |   |     | $                | 157.89 |
| Forfeited/Canceled/Expired                    |     |            |    (734 | ) |     | $                | 157.89 |
| Unvested and Outstanding at December 31, 2022 |     |            | 119,008 |   |     | $                | 157.89 |
| Granted                                       |     |            |       — |   |     | $                | 157.89 |
| Forfeited/Canceled/Expired                    |     |            |  (2,020 | ) |     | $                | 157.89 |
| Unvested and Outstanding at December 31, 2023 |     |            | 116,988 |   |     | $                | 157.89 |

During the years ended December 31, 2023 and 2022,
the Company recognized no stock-based compensation expense in connection with RSU awards granted under the plans. Compensation expense
for RSU awards is recognized upon meeting both the time-vesting condition and the triggering event condition. As of December 31, 2023,
based upon the grant date fair value of such RSU awards of $157.89 per share, we would expect to recognize $18,471,789 of previously unrecognized
compensation expense for RSU awards upon the settling of those RSUs and the expiration any associated lock up agreements entered into
in connection with this offering.

Equity-classified warrants — During
the year ended 2022, the Company issued 8,166 warrants to purchase the Company’s common stock to certain broker companies as
part of consideration for services performed