Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 69

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 69
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 terms become probable.

28

Stock option activity under
the 2024 Plan for the nine months ended September 30, 2025 was as follows:

             Weighted          Weighted   Average          Average   Remaining          Exercise   Contractual      Outstanding   Price Per   Life      Shares   Share   (in Years)   Balance, December 31, 2024 (Successor)   3,247   $200.00    9.64   Options granted   70,904   $14.55    -   Balance, September 30, 2025 (Successor)   74,151   $22.67    9.57   Options exercisable as of September 30, 2025   24,489   $39.90    9.48  

The Company estimated the
fair value of the stock options during the nine months ended September 30, 2025 and for the period from February 14, 2024 to September
30, 2024 using Black-Scholes with the following assumptions.

    Nine Months Ended September 30,  
    February 14, 
2024 to September 30, 

    2025  
    2024 

    (Successor)  
    (Successor) 
  
    Risk-free interest rate 
    3.98% to 4.01%  
    4.46% to 4.79% 
  
    Expected life (in years) 
    5.0  
    5.0 to 6.0 
  
    Expected dividend yield 
    -%  
    -% 
  
    Expected volatility 
    104.54% to 121.09%  
    143.4% to 153.5% 

There were no stock options
granted during the predecessor period from January 1, 2024 and February 13, 2024.

For the period from February
14, 2024 through September 30, 2024, the Company recorded stock-based compensation expense of $1,899,771, of which $984,365 was related
to R&D and $915,406 was related to general and administrative. For the period from January 1,