Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 350

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 350
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 September 30, 2025, 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.

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 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.

The following table summarizes the RSU activity for the nine months ended September 30, 2025 and 2024:

|                                              |     | Restricted 
      Stock 
      Units |   |     | Weighted       
 Average        
 Exercise Price 
 Per Share      |        |
|:---------------------------------------------|:----|-----------:|:--|:----|:---------------|-------:|
| Vested and Outstanding at December 31, 2024  |     |     12,271 |   |     | $              | 218.60 |
| Granted                                      |     |    127,750 |   |     | $              |  24.80 |
| Settled                                      |     |   (140,021 | ) |     | $              |  42.00 |
| Forfeited/Canceled/Expired                   |     |          — |   |     | $              |      — |
| Vested and Outstanding at September 30, 2025 |     |          — |   |     | $              |      — |

During the nine months ended September 30, 2025 and 2024, the Company recognized $ and $0, respectively, of stock-based compensation expense in connection with RSU awards granted under the plans. Compensation expense for RSU awards is recognized upon