Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 414

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 414
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117 |     | $     | 320,117 |

|                                   |     | December 31, 2022 |   |     |         |   |     |         |         |     |       |         |
|:----------------------------------|:----|:------------------|:--|:----|:--------|:--|:----|:--------|--------:|:----|:------|--------:|
|                                   |     | Level 1           |   |     | Level 2 |   |     | Level 3 |         |     | Total |         |
| Preferred stock warrant liability |     | $                 | - |     | $       | - |     | $       | 610,381 |     | $     | 610,381 |

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

| Balance at December 31, 2021             |     | $ |  647,373 |   |
| Gain on revaluation of warrant liability |     |   |  (36,992 | ) |
| Balance at December 31, 2022             |     | $ |  610,381 |   |
| Gain on revaluation of warrant liability |     |   | (290,264 | ) |
| Balance at December 31, 2023             |     | $ |  320,117 |   |

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 fair value of restricted
stock awards is based upon the estimated share price of the common shares on the date of grant. Forfeitures are accounted for as they