Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 276

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 276
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, for
costs related to all share-based payments including stock options and restricted stock awards granted to employees and non-employees.
Companies are required to estimate the fair value of all share-based payment awards on the date of grant using an option pricing model,
and the Company uses a Black-Scholes option pricing model (“Black-Scholes”) to estimate option award fair value. The assumptions
used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties
and the application of management’s judgment. The fair value of restricted stock awards is based upon the estimated share price
of the common shares on the date of grant. Forfeitures are accounted for as they occur, and the Company applies the simplified method
to estimate expected term of “plain vanilla” options. All options and restricted stock awards granted since inception are
expensed on a straight-line basis over the requisite service period, which is usually the vesting period, or upon the completion of certain
performance-based vesting terms and the related amounts are recognized in the statements of operations.

The accounting for stock
options granted to outside consultants is consistent with the accounting for stock-based payments to officers and directors, as described
above, by measuring the cost of services received in exchange for equity awards utilizing the grant date fair value of the awards, with
the cost recognized as stock-based compensation expense on the straight-line basis in the Company’s financial statements over the
vesting period of the awards.

Recent Accounting Standards

See the section titled in
Note 2 to the Company’s consolidated financial statements for the year ended December 31, 2024, appearing elsewhere herein.

Item 7A. Quantitative and Qualitative Disclosures
About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide the information under this
item.

Item 8. Financial Statements and Supplementary
Data.

Our consolidated financial
statements for the year ended December 31, 2024, together with the reports of our independent registered public accounting firm, appear
beginning on page F-1 of this Annual Report.

Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure.

None.

109

Item 9A. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

Disclosure controls are procedures
that are designed with the objective of ensuring that information