Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 385

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 385
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      | 85.0 | % |

At December 31, 2023 and 2022, the preferred
stock warrants were exercisable and remained outstanding.

F-62 CERo Therapeutics, Inc. Notes to Financial Statements

NOTE 9 – COMMON STOCK

In September 2016, the Company issued
shares of common stock to the founders (“Founder Stock”) in exchange for consideration payable by cash and by transfer of
certain technology and related rights owned by the founders. The Founder Stock vested ratably over a four-year period following the date
of issuance. As of December 31, 2022, all Founders Stock was fully vested.

The holders of common stock are also entitled
to receive dividends whenever funds are legally available, when and if declared by the Board of Directors. As of December 31, 2023,
dividends have never been declared.

|                                                                  |     | December 31, |            |     |      |            |
|                                                                  |     |         2023 |            |     | 2022 |            |
| Convertible preferred stock, authorized but not yet issued       |     |              |  1,849,738 |     |      |  1,849,738 |
| Conversion of convertible preferred stock issued and outstanding |     |              | 27,920,467 |     |      | 27,920,467 |
| Stock Incentive Plan:                                            |     |              |            |     |      |            |
| Awards available for grant                                       |     |              |  3,537,004 |     |      |  3,205,559 |
| Outstanding stock options                                        |     |              |    782,499 |     |      |  1,138,110 |
|                                                                  |     |              | 34,089,708 |     |      | 34,113,874 |

NOTE 10 – STOCK-BASED COMPENSATION

In October 2016, the Company’s Board of
Directors approved the adoption of an Equity Incentive Plan (“EIP”). As amended, the EIP permits the Company to grant awards
allowing for the issuance of up to shares of the Company’s common stock.

The EIP provides for the grant of incentive and
non-statutory stock options and restricted stock awards to employees, non-employee directors, and consultants of the Company. Stock options
and restricted stock awards granted under the EIP generally