Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 315

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 315
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2025, the shareholders approved an increase in the number of shares authorized for issuance under the 2024 Plan up to 250,000shares of common stock. On September 18, 2025, the shareholders approved an increase in the number of shares authorized for issuance under the 2024 Plan up to 1,750,000shares of common stock. As of September 30, 2025, the Company had made grants of 127,750shares of common stock under the 2024 Plan, and 1,622,250shares remained authorized for grant. Stock option awards generally vest on time -basedvesting schedules. Stock -basedcompensation expense is recognized based on the value of the portion of stock -basedpayment awards that is ultimately expected to vest and become exercisable during the period. The Company recognizes compensation expense for all stock -basedpayment awards made to employees, directors, and non -employeesusing a straight -linemethod, generally over a service period of fouryears. Advertising— The Company expenses costs relating to advertising either as costs are incurred or the first time the advertising takes place. Advertising expenses totaled $ 178,483and $ 311,195for the nine months ended September 30, 2025 and 2024, respectively, and were included in “Sales and marketing” in the condensed consolidated statements of operations. Income taxes— The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 740, “ Income Taxes” for establishing and classifying any tax provisions for uncertain tax positions. The Company’s policy is to recognize and include accrued interest and penalties related to unrecognized tax benefits as a component of income tax expenses. The Company is not aware of any entity level uncertain tax positions. Income taxes are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enacted date. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant tax related provisions, such as the permanent extension