Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 345

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 345
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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 nine months ended September 30, 2025 and 2024:

|                                              |     | Restricted 
      Stock 
      Units |   |     | Weighted       
 Average        
 Exercise Price 
 Per Share      |        |
|:---------------------------------------------|:----|-----------:|:--|:----|:---------------|-------:|
| Vested and Outstanding at December 31, 2024  |     |     12,271 |   |     | $              | 218.60 |
| Granted                                      |     |    127,750 |   |     | $              |  24.80 |
| Settled                                      |     |   (140,021 | ) |     | $              |  42.00 |
| Forfeited/Canceled/Expired                   |     |          — |   |     | $              |      — |
| Vested and Outstanding at September 30, 2025 |     |          — |   |     | $              |      — |

During the nine months ended September 30, 2025 and 2024, the Company recognized $ 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. In May 2024, RSUs were voluntarily terminated, and were issued, leaving issued RSUs to settle at a grant value of $ per unit. In May 2024, the Board of Directors approved awarding RSUs to employees, directors and consultants with a fair grant value of $ per unit. These RSUs contain a double trigger and, upon grant, were deemed to have met their time-based service requirements for vesting. They settled on the expiration of the Market Stand-off provision in the 2019 stock incentive plan (or May 24