Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 329

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 329
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 % |
| Expected Dividends                        |     |                     | — |     |      |  0.00 | % |
| Weighted Average Expected Term (in years) |     |                     | — |     |      |  5.00 |   |
| Risk-Free Interest Rate                   |     |                     | — |     |      |  2.14 | % |

As of December 31, 2023, warrants were
added for previous variable warrants. As of December 31, 2023 and 2022, there were outstanding and exercisable warrants to purchase
and , respectively, shares of the Company’s common stock, As of December 31, 2023, the weighted-average remaining contractual
term was years for the outstanding and exercisable warrants.

Deferred Compensation — Beginning
in May 2023, certain senior level employees elected to defer a portion of their salary until such time as the Company completed a
successful public registration of its stock. Upon success of the public registration, each employee will then be paid their deferred salary
plus $ dollars in RSUs or stock options (under the new 2024 Plan — See Note 16) for every $ dollar of deferred
salary. As of December 31, 2023, the Company recorded about $ including employer tax obligation of such deferred payroll expense,
included in accrued liabilities. Accordingly, as of December 31, 2023 the Company has also committed to issue approximately $ in
equity compensation related to the deferred compensation.

NOTE 10 — INCOME TAXES

| Deferred Tax Assets                |     | December 31, 
 2023         |             |   |     | 2022 |            |   |
|:-----------------------------------|:----|:-------------|------------:|:--|:----|:-----|-----------:|:--|
| Reserves                           |     | $            |      74,283 |   |     | $    |     83,134 |   |
| Deferred Wages                     |     |              |      93,745 |   |     |      |          — |   |
| Lease Liability                    |     |              |   1,005,696 |   |     |      |  1,072,236 |   |
| Net Operating Loss Carryforwards   |     |              |  11,250,985 |   |     |      |  8,973,639 |   |
| Credit