Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2713

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2713
---
888,402 shares of Predecessor’s common stock. On
close of the Merger, outstanding awards issued for the Predecessor EIP were converted to options to purchase a number of shares of the
Company’s Common Stock equal to the number of Predecessor shares multiplied by the Merger Exchange Ratio of 0.064452 at a price
of the Predecessor option strike price divided by the Merger Exchange Ratio. The Predecessor EIP was then cancelled.

During the six months ended
June 30, 2024, the Company’s Board of Directors granted directors, officers and employees options to purchase up to 50,400 shares
of Common Stock for exercise prices ranging from $35.20 per share to $481.00 per share under the 2024 Plan (as defined below). The grants
have various vesting conditions, including time-based and performance-based terms. These stock options expire through June 24, 2034. On
September 30, 2024 and October 1, 2024, 34,550 of these stock options were cancelled due to termination or other reasons. Additionally,
on October 1, 2024, the exercise price of the remaining 15,850 outstanding options granted under the 2024 Plan was adjusted to $10.00
per share, with all other terms of the original grant to remain without adjustment. On October 1, 2024, the Company calculated the total
fair value of the consideration for the modification of these stock options, which includes the incremental fair value of the stock options
(determined by comparing the fair values immediately prior to and immediately after the modification). The fair values were calculated
using the Black-Scholes option-pricing model, and the Company determined that the total fair value of the consideration related to the
modification of these stock options amounted to $76,027, of which $28,636 was expensed immediately and $47,391 will be recorded as stock-based
compensation expense over the remaining vesting term.

On October 1, 2024, the Company’s
Board of Directors granted directors, officers and employees options to purchase up to 47,780 shares of common stock for $10.00 per share.
The grants have various vesting conditions, including time-based and performance-based terms. These stock options expire on October 1,
2034.

F-28

Predecessor’s Stock
option activity for the period from December 31, 202