Company: CRVO
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001437749-25-013543
Chunk: 64

Company: CervoMed Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 64
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 two-year average burn rate (2023 to 2024) of approximately 3.54 percent.

Potential Dilution. In setting the number of shares authorized for issuance under the 2025 Plan, we also considered the potential dilution that would result by approval of the 2025 Plan, including the policies of certain institutional investors and major proxy advisory firms.

Potential dilution is calculated as shown below:

Potential dilution = Total shares available under the 2025 Plan plus shares subject to outstanding awards (“Total Award Shares”) divided by total number of outstanding shares plus Total Award Shares

As of the Record Date, our potential dilution was 10.1 percent. If the 2025 Plan is approved, our potential dilution will be 16.4 percent.

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Summary of the 2025 Plan

A summary description of the material features of the 2025 Plan is outlined below. The summary is qualified in its entirety by reference to the full text of the 2025 Plan. A copy of the 2025 Plan is attached to this proxy statement as Appendix A.

Purpose. The purpose of the 2025 Plan is to advance the interests of our Company and stockholders by enabling us to attract and retain qualified individuals to perform services for us, by providing incentive compensation for such individuals that is linked to the growth and profitability of our Company and increases in stockholder value, and aligning the interests of such individuals with the interests of our stockholders through opportunities for equity participation in our Company. Providing stock incentive awards under the 2025 Plan will be an important element in our overall success. In general, the Board believes that equity-based incentives align the interests of our management and employees with those of our stockholders. In addition, providing incentive awards under the 2025 Plan is an important strategy for attracting and retaining the type of high-quality executives, employees and advisors the Board believes is necessary for the achievement of our goals. Given the intense competition for such personnel, the Board believes that its ability to offer competitive compensation packages, including those with equity-based incentive components, such as stock options, is particularly important in attracting and retaining qualified candidates.

Eligibility. All employees (including officers and directors who also are employees), non-employee directors, consultants, advisors and independent contractors of the Company, or any subsidiary, will be eligible to receive incentive awards under the 2025 Plan. As of the Record Date, 21 employees and non-employee directors would have been eligible to receive