Company: CERO
Filing Date: 2025-07-21
Form Type: S-1
Source: 0001213900-25-066152
Chunk: 343

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-07-21
Form: S-1
Chunk 343
---
, and November 11, 2024. The 2024 Plan has an evergreen provision for annual
increases. On January 1, 2025, the reserve increased by shares. As of March 31, 2025, option awards have been granted, leaving
no shares reserved for future issuance.

The 2024 ESPP also has an
evergreen provision. On January 1, 2025, the reserve increased by shares. No awards have been granted under the 2024 ESPP as of March
31, 2025.

Stock option activity under
the 2024 Plan for the three months ended March 31, 2025 was as follows:

|                                          |     | Outstanding 
 Shares      |        |     | Weighted  
 Average   
 Exercise  
 Price Per 
 Share     |        |     | Weighted    
 Average     
 Remaining   
 Contractual 
 Life        
 (in Years)  |      |
|:-----------------------------------------|:----|:------------|-------:|:----|:----------|-------:|:----|:------------|-----:|
| Balance, December 31, 2024 (Successor)   |     |             |  3,247 |     | $         | 200.00 |     |             | 9.64 |
| Options granted                          |     |             | 20,313 |     | $         |  28.60 |     |             |    - |
| Balance, March 31, 2025 (Successor)      |     |             | 23,560 |     | $         |  52.20 |     |             | 9.86 |
| Options exercisable as of March 31, 2025 |     |             |  3,550 |     | $         | 151.20 |     |             | 9.57 |

F-28

The Company estimated the
fair value of the stock options during the three months ended March 31, 2025 using Black-Scholes with the following assumptions.

|                          |     |  March 31, |        |   |
|                          |     |       2025 |        |   |
|                          |     | -Successor |        |   |
| Risk-free interest rate  |     |            |   4.01 | % |
| Expected life (in years) |     |            |    5.0 |   |
| Expected dividend