Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 541

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 541
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. For the period from January 1, 2024 through February 13, 2024, Predecessor recorded an immaterial
amount of stock-based compensation expense.

For the year ended December
31, 2023, the Company recorded stock-based compensation expense of $96,896, of which $91,664 was related to R&D and $5,232 was related
to general and administrative.

As of December 31, 2024, the Company had approximately $1,009,000 of
unamortized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average
period of 2.02 years. The weighted average grant date calculated fair value per share of the Company’s options granted during the
period from February 14, 2024, through December 31, 2024, was $61.54.

There were no Predecessor options granted in
the year ended December 31, 2023.

NOTE
12 – INCOME TAXES

A reconciliation between the expected income tax
provision at the federal statutory rate and the reported income tax provision is approximately as follows: 

    2024  
    2023 
  
    Federal income tax at statutory rate 
    $(1,745,000) 
    $(1,565,000)
  
    State income tax, net of federal benefit 
     (580,000) 
     (520,000)
  
    Permanent differences 
     (1,358,000) 
     (75,000)
  
    Tax credits generated in current year, net of utilized 
     (408,000) 
     (171,000)
  
    Other 
     51,000  
     (2,102,000)
  
    Change in valuation allowance 
     4,040,000  
     4,433,000 
  
    Total 
    $-  
    $- 

The approximate components of the net deferred
tax assets as of December 31, 2024 and 2023 were as follows:

    2024  
    2023 
  
    Net operating loss carryforwards 
    $12,227,000  
    $9,067,000 
  
    Section 174 research and development capitalization 
     2,999,000  
     2,490,000 
  
    Research credits