Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 265

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 265
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 Stock      
 Units      |          |   |     | Weighted  
 Average   
 Exercise  
 Price     
 Per Share |        |
|:-----------------------------------------------|:----|:-----------|---------:|:--|:----|:----------|-------:|
| Unvested and Outstanding at December 31, 2023  |     |            |  116,944 |   |     | $         | 157.89 |
| Granted                                        |     |            |  232,025 |   |     | $         |   4.00 |
| Forfeited/Canceled/Expired                     |     |            | (105,880 | ) |     | $         | 157.89 |
| Unvested and Outstanding at September 30, 2024 |     |            |  243,089 |   |     | $         |  11.00 |

During the nine months ended September 30,
2024 and 2023, 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. During the nine months
ended September 30, 2024, restricted stock units (“RSUs”) were forfeited. In May 2024, RSUs were voluntarily
terminated, leaving issued RSUs to settle at a grant value of $ per unit. In May 2024, the Board of Directors approved
awarding RSUs to employees, directors and consultants with a fair grant value of $ per unit. These RSUs contain a double trigger
and, upon grant, were deemed to have met their time-based service requirements for vesting. They will settle on the expiration of the
Market Stand-off provision in the 2019 stock incentive plan (or May 24, 2025, which is 180 days from the November 25, 2024 closing of
the Company’s initial public offering, which occurred subsequent to September 30, 2024). Assuming all of them settle into common
stock we would expect to book an expense of $ at the fair grant values per RSU for the total awards as of September 30,
2024.

Equity-classified warrants— The
Company estimates the fair values of equity warrants using the Black-Scholes option-pricing model on the date of issuance. During the
nine months ended September 30, 2024 and 2023