Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 425

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 425
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 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 years ended December 31, 2024 and 2023:

|                                               |     |  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 $ stock-based compensation expense (including $ 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, restricted stock units (“RSUs”) were

F-86

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 9 —