Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 330

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 330
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 are not recognized on the balance sheets.

Certain leases include variable lease costs to
reimburse the lessor for real estate tax and insurance expenses, and certain non-lease components that transfer a distinct service to
the Lessee, such as common area maintenance services. The Company has elected to separate the accounting for fixed lease components and
variable and non-lease components for real estate and equipment leases. The variable lease costs are recorded on the consolidated statement
of operations as rent expense, within general and administrative expenses. The Company has no financing leases.

Derivative Financial Instruments- The
Company evaluates financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at
fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statements of operations.
Derivative assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement
or conversion of the instrument could be required within 12 months of the balance sheet date.

<div align='center'>F-11</div>

Fair value measurements – Fair value
is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
on the measurement date. In determining fair value, the assumptions that market participants would use in pricing an asset or liability
(the inputs) are based on a tiered fair value hierarchy consisting of three levels, as follows:

| Level 1 | – | Observable inputs such                                                                                      
 as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. |

| Level 2 | – | Inputs (other than quoted                                                                                                              
 prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted         
 prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets 
 that are not active.                                                                                                                   |

| Level 3 | – | Unobservable inputs for                                                                                                            
 which there is little or no market data and which require the Company to develop its own assumptions about how market participants 
 would price the asset or liability. Consideration is given to the risk inherent in the valuation technique and the risk inherent   
 in the inputs to the model.                                                                                                        |

The categorization of a financial instrument
within the valuation hierarchy is based upon the lowest level of