Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 340

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 340
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 and liabilities are recorded as a gain or loss to the consolidated statement of operations.
The loss reflected below on the consolidation of the VIE is reflected “on the line” (defined below) in the Company’s
opening accumulated deficit.

Costs incurred in obtaining
technology licenses are charged to research and development expense as IPR&D if the technology licensed has not reached technological
feasibility and has no alternative future use. The IPR&D recorded at the Closing of $ million is reflected “on the line”
in the Company’s opening accumulated deficit. To estimate the value of the acquired IPR&D, the Company used the avoided cost
method, which calculates a present value of a % return on research and development effort applied to research and development expenditures
over the life of the Predecessor. The determination of the fair value requires management to make a significant estimate of the return
on research and development expenditures. Changes in these assumptions could have a significant impact on the fair value of the IPR&D.
The estimate of the return on research and development expenditures was based on multiple published studies analyzing actual returns of
research and development expenditures.

F-12

The following is a summary
of the purchase price calculation:

| Number of shares of Common Stock                                                                                    |     |   |      2,500 |
|:--------------------------------------------------------------------------------------------------------------------|:----|:--|-----------:|
| Multiplied by PBAX’s share price, as of the Closing                                                                 |     | $ |  11,700.00 |
| Total                                                                                                               |     | $ | 29,250,000 |
| Fair value of PBAX founder’s shares converted to shares of Common Stock and transferred to Predecessor stockholders |     | $ |  5,118,750 |
| Fair value of contingent Common Stock consideration                                                                 |     | $ | 12,870,000 |
| Total Common Stock consideration                                                                                    |     | $ | 47,238,750 |
| Assumed liabilities                                                                                                 |     |   |  3,311,153 |
| Total purchase price                                                                                                |     | $ | 50,549,903 |

The allocation of the purchase price was as follows:

| Cash                                                              |     | $ |    963,855 |   |
| Net working capital deficit (excluding cash and cash equivalents) |     |   | (1,819,514 | ) |
| Fixed assets                                                      |     |   |    929,346 |   |
| Acquired in-process research and development                      |