Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 733

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9A
Chunk 733
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 for issuance under the 2024 Plan and the number of shares that may be issued pursuant
to incentive stock options, by an additional 208,454 shares each. As of December 31, 2024, no awards have been granted under the 2024
ESPP. The 2024 Plan has an evergreen provision that allows for an annual increase in the number of shares available for issuance under
the 2024 Plan to be added on the first day of January, starting with January 1, 2025, in an amount equal to the lesser of (i) 5% of the
fully diluted shares of our Common Stock on the immediately preceding December 31 or (ii) such number of shares as determined by our board
in each case subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. On January 1,
2025, the number of shares reserved under the 2024 Plan was increased by 5% of the fully diluted shares of our common stock on the immediately
preceding December 31, or 189,701 shares. The 2024 ESPP has an evergreen provision that allows for an annual increase in the number of
shares available for issuance under the 2024 ESPP to be added on the first day of each January, starting with January 1, 2025, by the
lesser of (i) 10,198 shares of our common stock, (ii) 1% of the fully diluted shares of common stock on the immediately preceding December
31, or (iii) such number of shares of common stock as determined by our board. The number of shares reserved under the 2024 ESPP is subject
to adjustment in the event of a stock split, stock dividend or other change in our capitalization. As of December 31, 2024, the board
of directors has granted an aggregate of 64,948 option awards under the 2024 Plan, leaving 215,232 shares reserved for future issuance
under the 2024 Plan.

The Company estimated the
fair value of stock options granted during the period February 14, 2024 through December 31, 2024 using Black-Scholes with the following
weighted average assumptions:

●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