Company: IPST
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001641172-25-009684
Chunk: 261

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-12
Form: 424B3
Chunk 261
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 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 years ended December 31, 2024 and 2023:

SUMMARY OF RSU’s

|                                               |     | Restricted  Stock  Units |          |   |     | Weighted Average  Exercise Price  Per Share |        |
|:----------------------------------------------|:----|:-------------------------|---------:|:--|:----|:--------------------------------------------|-------:|
| Unvested and Outstanding at December 31, 2022 |     |                          |  105,727 |   |     | $                                           | 157.89 |
| Granted                                       |     |                          |   14,015 |   |     | $                                           | 157.89 |
| Forfeited/Canceled/Expired                    |     |                          |   (2,798 | ) |     | $                                           | 157.89 |
| Unvested and Outstanding at December 31, 2023 |     |                          |  116,944 |   |     | $                                           | 157.89 |
| Granted                                       |     |                          |  234,525 |   |     | $                                           |   4.00 |
| Forfeited/Canceled/Expired                    |     |                          | (105,880 | ) |     | $                                           | 157.89 |
| Vested and Outstanding at December 31, 2024   |     |                          |  245,589 |   |     | $                                           |  10.93 |

During the year ended December 31, 2024, the Company recognized $4,892,110 stock-based compensation expense (including $312,500 accrued but not yet awarded) 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 year ended December 31, 2024, 520 restricted stock units (“RSUs”) were forfeited. In May 2024, 105,360 RSUs were voluntarily terminated, and 2,500