Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 392

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 392
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 each January, starting with January 1, 2025, by the
lesser of (i) shares of our common stock, (ii) % of the fully diluted shares of common stock on the immediately preceding December
31, or (iii) such number of shares of common stock as determined by our board. The number of shares reserved under the 2024 ESPP is subject
to adjustment in the event of a stock split, stock dividend or other change in our capitalization. As of December 31, 2024, the board
of directors has granted an aggregate of option awards under the 2024 Plan, leaving shares reserved for future issuance
under the 2024 Plan.

The Company estimated the
fair value of stock options granted during the period February 14, 2024 through December 31, 2024 using Black-Scholes with the following
weighted average assumptions:

| ● | The Common Stock expected dividend yield assumption of 0.0% is based on the 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 sufficient 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 price data for the Company’s 
 Common Stock becomes available.                                                                                                        |

F-58

| ● | The expected lives of the Company’s 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.                                  |

There were
no stock options granted by the Predecessor during the year ended December 31, 2023.

|                          |     |   December 31,