Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2681

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2681
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    $     -  
    $     -  
    $20,000  
    $20,000 

    December 31, 2023 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Preferred stock warrant liability 
    $     -  
    $     -  
    $320,117  
    $320,117 

The change in the fair value measurement using
significant inputs (Level 3) is summarized below:

    Preferred stock warrant liability (Predecessor): 

    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