Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 424

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 424
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              |            |     |      |            |
| Awards available for grant                                       |     |              |  3,537,004 |     |      |  3,205,559 |
| Outstanding stock options                                        |     |              |    782,499 |     |      |  1,138,110 |
|                                                                  |     |              | 34,089,708 |     |      | 34,113,874 |

NOTE 10 – STOCK-BASED COMPENSATION

In October 2016, the Company’s Board of
Directors approved the adoption of an Equity Incentive Plan (“EIP”). As amended, the EIP permits the Company to grant awards
allowing for the issuance of up to 4,888,402 shares of the Company’s common stock.

The EIP provides for the grant of incentive and
non-statutory stock options and restricted stock awards to employees, non-employee directors, and consultants of the Company. Stock options
and restricted stock awards granted under the EIP generally vest 25% on the first anniversary of the grant, then monthly to the fourth
anniversary of the date of grant. All awards expire ten years from the date of grant. Options are exercisable only to the extent vested.
The per share purchase price of all restricted stock and the exercise price of all stock options granted under the EIP must be at least
equal to 100% of the fair value of the Company’s common stock at the date of grant, as determined by the Board of Directors.

Stock option activity for the years ended December 31,
2023 and 2022, was as follows:

|                                     |     | Outstanding 
 Shares      |           |   |     | Weighted         
 Average Exercise 
 Price Per Share  |      |     | Weighted Average 
 Remaining        
 Contractual Life 
 (in years)       |      |
|:------------------------------------|:----|:------------|----------:|:--|:----|:-----------------|-----:|:----|:-----------------|-----:|
| Balance, December 31, 2022          |     |             | 1,138,110 |   |     | $                | 0.29 |     |                  | 8.18 |
| Options exercised                   |     |             |   (24,166 | ) |     | $                | 0.24 |     |                  |      |
| Options cancelled/forfeited/exp