Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 382

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 382
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18, 2021, the Sponsor provided
funds to pay for certain costs totaling $25,000 on behalf of the Company as consideration for 4,598,750 Founder Shares. Later in September
2021, the Company effected a 0.017 for 1 stock dividend for each Founder Share outstanding, and, as a result, the Sponsor held 4,679,125
Founder Shares following the stock dividend. As a result, the Company’s shares have been retroactively adjusted for this stock
dividend; however, due to the shares being closely held the corresponding earnings have not been capitalized from retained earnings.
The Sponsor agreed to forfeit up to 592,875 Founder Shares to the extent that the 45-day over-allotment option was not exercised in full
by the underwriter. Since the underwriter exercised the over-allotment option only in part, the Sponsor forfeited 82,875 Founder Shares.

The Sponsor has agreed, subject to limited exceptions,
not to transfer, assign or sell any of the Founder Shares until the earliest of: (a) one year after the completion of a business
combination and (b) subsequent to a business combination, (x) if the closing price of the shares of Class A common stock
equals or exceeds $12.00 per share (as adjusted) for any 20 trading days within any 30-trading day period commencing at least
150 days after a business combination, or (y) the date on which the Company completes a liquidation, merger, share exchange
or other similar transaction that results in all of the Public Stockholders having the right to exchange their shares of Class A
common stock for cash, securities or other property.

On July 3, 2023, the Sponsor delivered a notice
of conversion of an aggregate of 4,596,250 Founder Shares into an equal number of shares of Class A common stock. Such Founder Shares
were subsequently converted into Class B common stock.

Related Party Loans

On June 18, 2021, the Sponsor agreed to loan
the Company an aggregate of up to $300,000 to cover expenses related to the IPO pursuant to a promissory note which was amended on September 10,
2021 (as amended, the “Note”). This loan is non-interest-bearing. There was no balance on the Note as of December 31, 2023
and 2022.

In addition, in order to finance transaction costs
in connection with a business combination