Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 252

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 252
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 vest over a weighted average period of 0.0 years. The weighted average remaining contractual life of outstanding and exercisable ISOs is 0.61 years.

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 1to 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 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 three months ended March 31, 2025 and 2024:

SUMMARY OF RSU’s

|                                    |     | Restricted Stock Units |         |   |     | Weighted         
 Average Exercise 
 Price Per        
 Share            |       |
|:-----------------------------------|:----|:-----------------------|--------:|:--|:----|:-----------------|------:|
| Vested and Outstanding at December 
 31, 2024                           |     |                        | 245,589 |   |     | $                | 10.93 |
| Granted                            |     |                        |       — |   |     |                  |       |
| Forfeited/Canceled/Expired         |     |                        |    (150 | ) |     |                  |       |
| Vested and Outstanding             
 at March 31, 2025                  |     |                        | 245,439 |   |     | $                | 10.93 |

During the three months ended March 31, 2025 and 2024, the Company recognized $0 and $0, respectively, of 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. As of March 31, 202