Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2568

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 2568
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 Total 
  
    Earnout liability 
    $     -  
    $     -  
    $20,000  
    $20,000 

    December 31, 2023 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Preferred stock warrant liability 
    $     -  
    $     -  
    $320,117  
    $320,117 

The change in the fair value measurement using
significant inputs (Level 3) is summarized below:

    Preferred stock warrant liability (Predecessor): 

    Balance at January 1, 2023 
    $610,381 
  
    Gain on revaluation of warrant liability 
     (290,264)
  
    Balance at December 31, 2023 
     320,117 
  
    Gain on revaluation of warrant liability 
     (320,117)
  
    Balance at February 14, 2024 
    $- 

    Earnout liability (Successor): 

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

Research and development – R&D
costs consist primarily of salaries and benefits, including stock-based compensation, occupancy, materials and supplies, contracted research,
consulting arrangements, and other expenses incurred in the pursuit of the Company’s R&D programs. R&D costs are expensed
as incurred.

Stock-based compensation – The Company
periodically issues common stock and stock options to officers, directors, and consultants for services rendered. Stock-based compensation
accounting requires the recognition of stock-based compensation expense, using a grant date fair value-based method, for costs related
to all share-based payments including stock options and restricted stock awards granted to employees and non-employees. Companies are
required to estimate the fair value of all share-based payment awards on the date of grant using an option pricing model, and the Company
uses a Black-Scholes option pricing model (“Black-Scholes”) to estimate option award fair value. The assumptions used in
calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the
application of management’s judgment. The fair value of restricted stock awards