Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 53

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 53
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, 2024,
Predecessor recorded an immaterial amount of stock-based compensation expense.

For the three months ended
March 31, 2025, the Company recorded stock-based compensation expense of $304,946, of which $73,302 was related to research and development
and $231,644 was related to general and administrative.

As of March 31, 2025, the Company had approximately $1,210,000 of unamortized
stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period
of 1.8 years. The weighted average grant date calculated fair value per share of the Company’s options granted during the three
months ended March 31, 2025 was $1.20. The weighted average grant date calculated fair value per share of the Company’s options
granted during the period February 14, 2024, through March 31, 2024, was $1.06.

NOTE 12 –
401(K) RETIREMENT SAVINGS PLAN

The Company sponsors a 401(k)
defined contribution plan covering eligible employees who elect to participate. The Company is allowed to make discretionary profit sharing
and 401(k) matching contributions as defined in the plan and as approved by the Board of Directors. The Company’s contributions
for the period from February 14, 2024 through March 31, 2024 was $7,956 and Predecessor contributions during the period from January 1,
2024 through February 13, 2024 was $4,685. The Company did not make any contributions to the 401(k) during the three months ended March
31, 2025.

NOTE 13 –
RELATED-PARTY TRANSACTIONS

In February 2024, we issued
and sold an aggregate of 10,089 shares of Series A Preferred Stock, 6,127 Series A Common Warrants and 2,500 Preferred Warrants, at a
price of $800 per share of Series A Preferred Stock, for aggregate cash proceeds of approximately $8.0 million, plus additional cash proceeds
of up to $2.0 million if the Preferred Warrants are exercised.

The following table summarizes
the shares of our Series A Preferred Stock issued to our related parties:

    Purchasers 
    Shares of Series A Preferred Stock  
    Total Purchase Price 
  
    Daniel Corey(1) 
     150