Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 263

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 263
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-based compensation expense (including $ 312,500accrued 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, 520restricted stock units (“RSUs”) were forfeited. In May 2024, 105,360RSUs were voluntarily terminated, and 2,500were issued, leaving 11,064issued RSUs to settle at a grant value of $ 157.89per unit. In May 2024, the Board of Directors approved awarding 234,525RSUs to employees, directors and consultants with a fair grant value of $ 4.00per 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 180days from the November 25, 2024 closing of the Company’s initial public offering). For the period ended December 31, 2024, upon the consummation of the initial public offering on November 25, 2024, the Company recorded an expense of $ 2,684,995at the fair grant values per RSU for the total 245,589then vested awards.

| F-36 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

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

Equity-Based (Non-Cash) Compensation —The Company recorded equity-based (non-cash) compensation for employees (personnel) and consultants for the years ended December 31, 2024 and 2023 as follows:

SCHEDULE OF EQUITY-BASED (NON-CASH) COMPENSATION FOR EMPLOYEES (PERSONNEL) AND CONSULTANTS

|                                                |     | Years Ended December 31, 
 2024                     |      2024 |     | 2023 |   2023 |
|:-----------------------------------------------|:----|:-------------------------|----------:|:----|:-----|-------:|
| Production / Cost of Sales                     |     | $                        |   178,140 |     | $    |      — |
| Sales and Marketing