Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 351

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 351
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157.89 per
share. No ISOs 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 no grants in the years ended December
31, 2023 and 2022. As of December 31, 2023, the Company had $0 of unrecognized compensation expense related to ISOs expected to vest over
a weighted average period of 0.0 years. The weighted average remaining contractual life of outstanding and exercisable ISOs is 1.86 years.

<div align='center'>F-68

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements</div>

NOTE 9 — STOCKHOLDERS’ EQUITY (cont.)

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

|                                |     | For the Twelve Months Ended 
 December 31,                |   2023 |     |   |   2022 |
|:-------------------------------|:----|:----------------------------|-------:|:----|:--|-------:|
| Cost of Sales                  |     | $                           |      — |     | $ | 12,215 |
| Sales and Marketing            |     |                             |      — |     |   | 21,361 |
| General and Administrative     |     |                             | 18,595 |     |   | 53,083 |
| Total Share-based Compensation |     | $                           | 18,595 |     | $ | 86,659 |

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 the Company’s common stock. The Company recognizes the compensation expense for the restricted stock units