Company: CERO
Filing Date: 2025-07-21
Form Type: S-1
Source: 0001213900-25-066152
Chunk: 393

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-07-21
Form: S-1
Chunk 393
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 ended December
31, 2023, the Company recorded stock-based compensation expense of $, of which $ was related to R&D and $ was related
to general and administrative.

As of December 31, 2024, the Company had approximately $ of
unamortized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average
period of years. The weighted average grant date calculated fair value per share of the Company’s options granted during the
period from February 14, 2024, through December 31, 2024, was $.

There were no Predecessor options granted in
the year ended December 31, 2023.

NOTE 12 – INCOME TAXES

A reconciliation between the expected income tax
provision at the federal statutory rate and the reported income tax provision is approximately as follows:

|                                                        |     | 2024 |            |   |     | 2023 |            |   |
|:-------------------------------------------------------|:----|:-----|-----------:|:--|:----|:-----|-----------:|:--|
| Federal income tax at statutory rate                   |     | $    | (1,745,000 | ) |     | $    | (1,565,000 | ) |
| State income tax, net of federal benefit               |     |      |   (580,000 | ) |     |      |   (520,000 | ) |
| Permanent differences                                  |     |      | (1,358,000 | ) |     |      |    (75,000 | ) |
| Tax credits generated in current year, net of utilized |     |      |   (408,000 | ) |     |      |   (171,000 | ) |
| Other                                                  |     |      |     51,000 |   |     |      | (2,102,000 | ) |
| Change in valuation allowance                          |     |      |  4,040,000 |   |     |      |  4,433,000 |   |
| Total                                                  |     | $    |          - |   |     | $    |          - |   |

The approximate components of the net deferred
tax assets as of December 31, 2024 and 2023 were as follows:

|                                                     |     |   |        2024 |   |     |   |        2023 |   |