Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 382

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 382
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”) in exchange for consideration payable by cash and by transfer of
certain technology and related rights owned by the founders. The Founder Stock vested ratably over a four-year period following the date
of issuance. As of December 31, 2022, all Founders Stock was fully vested.

The holders of common stock are also entitled
to receive dividends whenever funds are legally available, when and if declared by the Board of Directors. As of December 31, 2023,
dividends have never been declared.

|                                                                  |     | December 31, |            |     |      |            |
|                                                                  |     |         2023 |            |     | 2022 |            |
| Convertible preferred stock, authorized but not yet issued       |     |              |  1,849,738 |     |      |  1,849,738 |
| Conversion of convertible preferred stock issued and outstanding |     |              | 27,920,467 |     |      | 27,920,467 |
| Stock Incentive Plan:                                            |     |              |            |     |      |            |
| Awards available for grant                                       |     |              |  3,537,004 |     |      |  3,205,559 |
| Outstanding stock options                                        |     |              |    782,499 |     |      |  1,138,110 |
|                                                                  |     |              | 34,089,708 |     |      | 34,113,874 |

NOTE 10 – STOCK-BASED COMPENSATION

In October 2016, the Company’s Board of
Directors approved the adoption of an Equity Incentive Plan (“EIP”). As amended, the EIP permits the Company to grant awards
allowing for the issuance of up to shares of the Company’s common stock.

The EIP provides for the grant of incentive and
non-statutory stock options and restricted stock awards to employees, non-employee directors, and consultants of the Company. Stock options
and restricted stock awards granted under the EIP generally vest % on the first anniversary of the grant, then monthly to the fourth
anniversary of the date of grant. All awards expire ten years from the date of grant. Options are exercisable only to the extent vested.
The per share purchase price of all restricted stock and the exercise price of all stock options granted under the EIP must be at least
equal to % of the