Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 261

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 261
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 422 of the Code, or any successor provision, and any applicable regulations thereunder. The exercise price of each ISO is the fair market value of the Company’s stock on the applicable date of grant. The Company used the mean volatility estimate from Varga’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 $ 157.89up 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 $ 157.89per share. NoISOs 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 nogrants in the years ended December 31, 2024 and 2023. As of December 31, 2024, the Company had $ 0of unrecognized compensation expense related to ISOs expected to vest over a weighted average period of 0.0years. The weighted average remaining contractual life of outstanding and exercisable ISOs is 1.86years.

| F-35 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 9 — STOCKHOLDERS’ EQUITY / (DEFICIT)(cont.)

The following table presents stock-based compensation expense included in the consolidated statements of operations related to ISOs issued under the 2019 Plan:

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS RELATED TO ISOs ISSUED

|                                |     | 2024                                     
 For the Twelve Months Ended December 31, 
 2024                                     |   |     | 2023 
 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