Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 344

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 344
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or)      |     |             | 471,199 |     | $         |  2.61 |     |             | 9.86 |
| Options exercisable as of March 31, 2025 |     |             |  71,000 |     | $         |  7.56 |     |             | 9.57 |

F-28

The Company estimated the
fair value of the stock options during the three months ended March 31, 2025 using Black-Scholes with the following assumptions.

|                          |     |  March 31, |        |   |
|                          |     |       2025 |        |   |
|                          |     | -Successor |        |   |
| Risk-free interest rate  |     |            |   4.01 | % |
| Expected life (in years) |     |            |    5.0 |   |
| Expected dividend yield  |     |            |      - | % |
| Expected volatility      |     |            | 121.09 | % |

For the period from February
14, 2024 through March 31, 2024, the Company recorded stock-based compensation expense of $ million, of which $ million was
related to R&D and $ 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
March 31, 2025, the Company recorded stock-based compensation expense of $, of which $ was related to research and development
and $ was related to general and administrative.

As of March 31, 2025, the Company had approximately $ of unamortized
stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period
of 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 $. 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 $.

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