Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 193

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 193
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 of shares reserved under the 2024 Plan was increased by 5% of the fully diluted shares of our common stock
on the immediately preceding December 31, or 9,485 shares. On May 29, 2025, at the Company’s annual meeting, the stockholders approved
an amendment to the 2024 Plan to increase the number of shares issuable thereunder by an additional 100,000 shares of Common Stock.

On March 25, 2024, stockholders approved the 2024 Employee Stock Purchase
Plan (the “2024 ESPP”), with initial reserves of 255 shares of common stock. The 2024 ESPP became effective on February 14,
2024. The 2024 ESPP also has an evergreen provision. On January 1, 2025, the reserve increased by 510 shares. No awards have been granted
under the 2024 ESPP as of June 30, 2025.

On March 4, 2025, the Company’s Board of Directors granted an
aggregate of 20,313 stock options under the 2024 Plan, to board members, exercisable on the date of grant at $28.60 per share with a ten-year
term and vest over a requisite service period, which is usually the vesting period, and upon the completion of certain performance-based
vesting terms. These options were valued at $488,720 on the grant date using a Black Scholes option pricing model using the assumptions
summarized below. The Company recorded the fair value of the unvested stock options, in the amount of $488,720 as deferred compensation
on the grant date, which is being amortized over the vesting period or upon the completion of certain performance-based vesting terms.

On May 30, 2025, the Company’s Board of Directors granted an
aggregate of 50,591 stock options under the 2024 Plan, to executive officers, board members, employees, and consultants, exercisable on
the date of grant at $8.91 per share with a ten-year term and vest over a requisite service period, which is usually the vesting period,
or upon the completion of certain performance-based vesting terms. These options were valued at $351,862 on the grant date using a Black
Scholes option pricing model using the assumptions summarized below. The Company recorded the fair value of the unvested stock options,
in the amount of $351,