Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 632

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 632
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718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model.

The Company estimates the fair value of employee and nonemployee stock options on the grant date using the Black-Scholes option-pricing model. In valuing stock options, the Company makes assumptions about the fair value of the underlying equity, risk-free interest rates, dividend yields, volatility, and the expected term. Stock-based compensation expense is based on awards ultimately expected to vest. The Company recognizes stock-based compensation expense for stock option awards with only service-based vesting conditions on a straight-line basis over the requisite service period of the award. Stock option awards containing a performance based vesting criteria are recognized as expense when the performance criteria or met, or if the performance criteria are considered probable, expense is recognized straight-line over the performance. Stock-based compensation expense is adjusted for forfeitures as those forfeitures occur.

Fair Value Measurement

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on the assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

| F-110 |

<div align='center'>CEREVAST MEDICAL, INC.

NOTES TO FINANCIAL STATEMENTS</div>

| ● | Level                                                                                      
 1: Unadjusted quoted prices in active markets for identical assets or liabilities.         |
| ● | Level                                                                                      
 2: Other than quoted prices included in Level 1 inputs that are observable for the asset   
 or liability, either directly or indirectly.                                               |
| ● | Level                                                                                      
 3: Unobservable inputs for the asset or liability used to measure fair value to the extent 
 that observable inputs are not available.                                                  |

As of December 31, 2023 and 2022, there were no such assets or liabilities. In addition, there were no transfers of assets or liabilities between Level 1, Level 2, and Level 3 categories of the fair value hierarchy during the years ended December 31, 2023 and 2022.

The Company’s financial instruments include cash, accounts payable, and short-term debt. As of December 31, 2023 and 2022, the carrying amounts of cash, accounts payable, and short-term