Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 359

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 359
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:|:--|
| Balance at January 1, 2023                       |     | $ |    610,381 |   |
| Gain on revaluation of warrant liability         |     |   |   (290,264 | ) |
| Balance at December 31, 2023                     |     |   |    320,117 |   |
| Gain on revaluation of warrant liability         |     |   |   (320,117 | ) |
| Balance at February 14, 2024                     |     | $ |          - |   |
| Earnout liability (Successor):                   |     |   |            |   |
| Balance at February 14, 2024                     |     | $ |  4,900,000 |   |
| Gain on revaluation of earnout liability         |     |   | (4,880,000 | ) |
| Balance at December 31, 2024                     |     | $ |     20,000 |   |

Research and development– R&D
costs consist primarily of salaries and benefits, including stock-based compensation, occupancy, materials and supplies, contracted research,
consulting arrangements, and other expenses incurred in the pursuit of the Company’s R&D programs. R&D costs are expensed
as incurred.

Stock-based compensation –The Company
periodically issues common stock and stock options to officers, directors, and consultants for services rendered. Stock-based compensation
accounting requires the recognition of stock-based compensation expense, using a grant date fair value-based method, 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