Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 437

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 437
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 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 % of the fully diluted
shares of our common stock on the immediately preceding December 31, or 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) shares of our common stock, (ii) % 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 option awards under the 2024 Plan, leaving 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. Department of Treasury instruments whose term 
 was most consistent with the expected life of the Company’s stock options.                                |

| ● | The expected stock price volatility assumption was determined by examining the historical volatilities                                 
 for industry peers, as the Company does not have sufficient public trading history for the Company’s Common Stock. The Company will    
 continue to analyze the historical stock price volatility and expected term assumption as more historical price data for the Company’s 
 Common Stock becomes available.                                                                                                        |

F-62

| ● | The expected lives of the Company’s stock options are estimated based on the type of award issued                                            
 using approaches that do not rely on the historical data of the Company, as management has concluded there is insufficient data to provide   
 a reasonable forward-looking estimate. The expected life of an incentive stock option is estimated using