Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 213

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 213
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 options during the nine months ended September 30, 2025 and for the period from February 14, 2024 to September
30, 2024 using Black-Scholes with the following assumptions.

    Nine Months Ended September 30,  
    February 14, 
2024 to September 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 September 30, 2024, the Company recorded stock-based compensation expense of $1,899,771, of which $984,365 was related
to R&D and $915,406 was related to general and administrative. For the period from January 1, 2024 through February 13, 2024, Predecessor
recorded an immaterial amount of stock-based compensation expense.

For the three months ended
September 30, 2025, the Company recorded stock-based compensation expense of $348,116, of which $265,891 was related to research and development
and $82,225 was related to general and administrative. For the nine months ended September 30, 2025, the Company recorded stock-based
compensation expense of $836,390, of which $209,348 was related to research and development and $627,042 was related to general and administrative.

As of September 30, 2025, the
Company had approximately $1,031,000 of unamortized stock-based compensation expense related to unvested stock options, which is expected
to be recognized over a weighted average period of 1.3 years. The weighted average grant date calculated fair value per share of the Company’s
options granted during the nine months ended September