Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 199

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 199
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 with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $2.00 per share or higher during a regular trading day or (ii) on the 6 month anniversary of the warrant issuance date. (A related party portion thereof being 299,543 shares of Series B Preferred Stock that would be eligible to be converted into 8,635,864 shares of common stock will be exchanged for: 431,791 shares of common stock; 4,317,934 prepaid warrants with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $1.50 per share or higher during a regular trading day or (ii) on the 3 month anniversary of the warrant issuance date; and, 3,886,139 prepaid warrants with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $2.00 per share or higher during a regular trading day or (ii) on the 6 month anniversary of the warrant issuance date.)  (See Note 14.)Stock options — The Company’s 2018 Equity Incentive Plan was approved by the HDC Board and the HDC shareholders in March 2018. On April 27, 2019, in anticipation of the Company’s reorganization on May 1, 2019, the HDHC Board and the HDHC sole stockholder approved HDHC’s 2019 Equity Incentive Plan (the “2019 Plan”). Upon the closing of the Company’s initial public offering (which occurred on November 25, 2024), the 2024 Equity Incentive Plan (the “2024 Plan”) became effective, authorizing the issuance of up to 2,500,000 shares of common stock.   On June 24, 2025, the shareholders approved an increase in the number of shares authorized for issuance under the 2024 Plan to up to 5,000,000 shares on common stock.  As of June 30, 2025, the Company had made grants of 2,527,500 shares of common stock under the 2024 Plan, and 2,472,500 shares remained authorized for grant.The 2024 Plan allows for the grant of incentive stock options (“ISOs”), nonqualified stock options (“NQ