Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1016

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 10
Chunk 1016
---
 (320,117) 
     (320,117)
  
    Balance at February 13, 2024 
    $-  
    $-  
    $-  
    $- 

    Earnout liability (Successor): 

    Balance at February 14, 2024 
     -  
     -  
     4,900,000  
     4,900,000 
  
    Gain on revaluation of earnout liability 
     -  
     -  
     (4,880,000) 
     (4,880,000)
  
    Balance at December 31, 2024 
    $-  
    $-  
    $20,000  
    $20,000 

NOTE 11 – STOCK-BASED COMPENSATION

In October 2016, Predecessor’s
Board of Directors approved the adoption of an Equity Incentive Plan (“Predecessor EIP”). As amended, the Predecessor EIP
permitted the Predecessor to grant awards allowing for the issuance of up to 4,888,402 shares of Predecessor’s common stock. On
close of the Merger, outstanding awards issued for the Predecessor EIP were converted to options to purchase a number of shares of the
Company’s Common Stock equal to the number of Predecessor shares multiplied by the Merger Exchange Ratio of 0.064452 at a price
of the Predecessor option strike price divided by the Merger Exchange Ratio. The Predecessor EIP was then cancelled.

During the six months ended
June 30, 2024, the Company’s Board of Directors granted directors, officers and employees options to purchase up to 50,400 shares
of Common Stock for exercise prices ranging from $35.20 per share to $481.00 per share under the 2024 Plan (as defined below). The grants
have various vesting conditions, including time-based and performance-based terms. These stock options expire through June 24, 2034. On
September 30, 2024 and October 1, 2024, 34,550 of these stock options were cancelled due to termination or other reasons. Additionally,
on October 1, 2024, the exercise price of the remaining 15,850 outstanding options granted under the 2024 Plan was adjusted to $10.00