Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 335

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 335
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 — |   |     | $                                             | 157.89 |     |                                                             |      |     |                            |      |

ISOs require a recipient to remain in service to the Company, ISOs generally vest ratably over periods ranging from one 1to four years from the vesting start date of the grant and vesting of ISOs ceases upon termination of service to the Company. Vested ISOs are exercisable for three months after the date of termination of service. The terms and conditions of any ISO shall comply in all respects with Section 422 of the Code, or any successor provision, and any applicable regulations thereunder. The exercise price of each ISO is the fair market value of the Company’s stock on the applicable date of grant. The Company used the mean volatility estimate from Varga’s 409A valuation based on the median 5-year volumes of select peer companies. Fair value is estimated based on a combination of shares being sold at $157.89 up through February of 2019 and the most recent 409A completed when these ISOs were issued in April of 2018 valuing the Company’s stock at $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, 2024 and 2023. As of December 31, 2024, 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.

| F-67 |

<div align='center'>Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements</div>

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

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

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE INCLUDED IN THE CONSOLIDATED STATEMENTS OF OPERATIONS RELATED TO ISOs ISSUED

|                                |     | 2024                                     
 For the Twelve Months Ended December 31, 
 2024                                     |   |     | 2023 
 2023 |        |
|:-------------------------------|:----|:-----------------------------------------|:--|: