Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 24

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 24
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---------|:----|:--|-------:|
| Balance at December 31, 2024             |     | $ | 20,000 |
| Gain on revaluation of earnout liability |     |   |      - |
| Balance at June 30, 2025                 |     | $ | 20,000 |

<div align='center'>9</div>

Research and development– R&D costs consist primarily of salaries and benefits, including stock-based compensation, occupancy, materials and supplies, contracted research, consulting arrangements, and other expenses incurred in the pursuit of the Company’s R&D programs. R&D costs are expensed as incurred.

Stock-based compensation –The Company periodically issues common stock and stock options to officers, directors, and consultants for services rendered. Stock-based compensation accounting requires the recognition of stock-based compensation expense, using a grant date fair value-based method, for costs related to all share-based payments including stock options and restricted stock awards granted to employees and non-employees. Companies are required to estimate the fair value of all share-based payment awards on the date of grant using an option pricing model, and the Company uses a Black-Scholes option pricing model (“Black-Scholes”) to estimate option award fair value. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment:

| ● | The                                                                                       
 Common Stock expected dividend yield assumption of 0.0% is based on the expectation of no 
 dividend payouts to Common Stock.                                                         |

| ● | The                                                                                        
 risk-free interest rate assumption is based on the U.S. Department of Treasury instruments 
 whose term was most consistent with the expected life of the Company’s stock options.      |

| ● | The                                                                                                
 expected stock price volatility assumption was determined by examining the historical volatilities 
 for industry peers, as the Company does not have sufficient public trading history for the         
 Company’s Common Stock. The Company will continue to analyze the historical stock price            
 volatility and expected term assumption as more historical price data for the Company’s            
 Common Stock becomes available.                                                                    |

| ● | The                                                                                               
 expected lives of the Company’s stock options are estimated based on the type of award            
 issued using approaches that do not rely on the historical data of the Company, as management     
 has concluded there is insufficient data to provide a reasonable forward-looking estimate.        
 The expected life of an incentive stock option is estimated using the simplified method described 
 in Staff Accounting Bulletin Topic 14