Company: CERO
Filing Date: 2025-07-21
Form Type: S-1
Source: 0001213900-25-066152
Chunk: 342

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-07-21
Form: S-1
Chunk 342
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          - |   |
| Earnout liability (Successor):                   |     |         |   |     |         |   |     |         |            |   |     |       |            |   |
| Balance at February 14, 2024                     |     |         | - |     |         | - |     |         |  4,900,000 |   |     |       |  4,900,000 |   |
| Gain on revaluation of earnout liability         |     |         | - |     |         | - |     |         | (1,800,000 | ) |     |       | (1,800,000 | ) |
| Balance at March 31, 2024                        |     | $       | - |     | $       | - |     | $       |  3,100,000 |   |     | $     |  3,100,000 |   |
| Earnout liability (Successor):                   |     |         |   |     |         |   |     |         |            |   |     |       |            |   |
| Balance at December 31, 2024                     |     |         | - |     |         | - |     |         |     20,000 |   |     |       |     20,000 |   |
| Gain on revaluation of earnout liability         |     |         | - |     |         | - |     |         |          - |   |     |       |          - |   |
| Balance at March 31, 2025                        |     | $       | - |     | $       | - |     | $       |     20,000 |   |     | $     |     20,000 |   |

NOTE 11 – STOCK-BASED COMPENSATION

On March 25, 2024, stockholders
approved the 2024 Equity Incentive Plan (2024 Plan) and 2024 Employee Stock Purchase Plan (2024 ESPP), with initial reserves of
and shares of common stock, respectively. The 2024 Plan and 2024 ESPP became effective on February 14, 2024. No awards have been granted
under the 2024 ESPP as of March 31, 2025.

Stockholders approved increases
in shares available under the 2024 Plan on April 30, 2024