Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 194

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 194
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862 as deferred compensation on the grant date, which is being amortized over the vesting period or upon the completion
of certain performance-based vesting terms.

28

Stock
option activity under the 2024 Plan for the six months ended June 30, 2025 was as follows:

             Weighted          Weighted   Average          Average   Remaining          Exercise   Contractual      Outstanding   Price Per   Life      Shares   Share   (in Years)   Balance, December 31, 2024 (Successor)   3,247   $200.00    9.64   Options granted   70,904   $14.55    -   Balance, June 30, 2025 (Successor)   74,151   $22.67    9.82   Options exercisable as of June 30, 2025   8,413   $77.16    9.61  

The Company estimated the fair value of the stock options during the
six months ended June 30, 2025 and for the period from February 14, 2024 to June 30, 2024 using Black-Scholes with the following assumptions.

    Six Months Ended  June 30,  
    February 14, 2024 to June 30, 

    2025  
    2024 

    (Successor)  
    (Successor) 
  
    Risk-free interest rate 
     3.98% to 4.01%  
     4.46% to 4.79% 
  
    Expected life (in years) 
     5.0  
     5.0 to 6.0 
  
    Expected dividend yield 
     -%  
     -% 
  
    Expected volatility 
     104.54% to 121.09%  
     143.4% to 153.5% 

There were no stock options granted during the predecessor period from
January 1, 2024 and February 13, 2024.

For
the period from February 14, 2024 through June 30, 2024, the Company recorded stock-based compensation expense of $1,485,027, of which