Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 323

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 323
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 $         |      - |     |             |    - |
| Balance, February 14, 2024 (Predecessor) |     |             |       - |   |     | $         |      - |     |             |    - |
| Options granted (Successor)              |     |             |  50,397 |   |     | $         | 168.00 |     |             |      |
| Options Cancelled (Successor)            |     |             | (23,822 | ) |     | $         | 173.00 |     |             |      |
| Balance, September 30, 2024 (Successor)  |     |             |  26,575 |   |     | $         | 163.00 |     |             | 9.51 |

The intrinsic value of Predecessor options exercised
during the nine-month period ended September 30, 2023 was $. No options were exercised in the nine-month period ended September 30,
2024.

On March 25, 2024, the Company’s Board
adopted, and its stockholders approved, an Equity Incentive Plan (the “2024 Plan”). The 2024 Plan provides for the granting
of stock options, restricted stock and stock appreciation rights to employees, members of the Board of Directors and non-employee consultants.
Stock options granted generally expire after their original date of grant and generally vest % on the first anniversary
of the grant, then monthly to the fourth anniversary of the date of grant, subject to continued service through the applicable vesting
date. The plan allows for the issuance of up to shares of Common Stock. On April 30, 2024, the 2024 Plan was amended
to include additional shares of Common Stock in the pool available for future grant awards.

The Company estimated the fair value of stock
options granted during the period February 14, 2024 through September 30, 2024 using Black-Scholes with the following weighted average
assumptions:

| ● | The                                                                                                                         
 Common Stock expected dividend yield assumption of 0.0% is based on the expectation of no dividend payouts to Common Stock. |

| ● | The                                                                                                                                         
 risk-free interest rate assumption is based on the U.S. Department of Treasury instruments whose term was most consistent with the expected 
 life of the Company’s stock options.                                                                                                        |

| ● | The                                                                                                                                   
 expected stock price volatility