Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 334

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 334
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 liability (Predecessor): |     |   |            |   |
|:-------------------------------------------------|:----|:--|-----------:|:--|
| 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         |     |   | (4,870,000 | ) |
| Balance at September 30, 2024                    |     | $ |     30,000 |   |
| Earnout liability (Successor):                   |     |   |            |   |
| Balance at December 31, 2024                     |     | $ |     20,000 |   |
| Gain on revaluation of earnout liability         |     |   |          - |   |
| Balance at September 30, 2025                    |     | $ |     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 Common Stock expected dividend yield assumption of 0.0% is based on the expectation of no dividend payouts