Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 387

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 387
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 ● | The common stock expected dividend yield assumption of 0.0% is based on the Company’s history and 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 any 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 data for the Company’s common stock becomes available. |

| ● | The expected lives of 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 the simplified method described in Staff Accounting Bulletin Topic 14 – Share-Based Payment. All incentive stock options awarded by the Company have terms consistent with this approach, which is to calculate the weighted average midpoint between the vesting date of each vesting tranche and the termination date of the option. Non-qualified stock options are valued using the contractual life as the expected term. |

For the year 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.

For the year ended December 31, 2022, 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, 2023, there was $
of unamortized stock-based compensation cost related to unvested stock options, which is expected to be recognized over a weighted average
period of years. No options were granted in 2023, and the weighted average grant date calculated fair value per share of options
granted during the year ended December 31, 2022, was $.

NOTE 11 – INCOME TAXES

|                                                     |     |   |        2023 |   |     |   |       2022 |   |
|:----------------------------------------------------|:----|:--|------------:|:--|:----|:--|-----------:|:--|
| Net operating loss carryforwards                    |