Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 361

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 361
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<div align='center'>F-31

PHOENIX BIOTECH ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023</div>

All of the Public Shares contain a redemption feature
which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a stockholder vote
or tender offer in connection with the Company’s business combination and in connection with certain amendments to the Company’s
amended and restated certificate of incorporation (the “Charter”). In accordance with the rules of the U.S. Securities and
Exchange Commission (the “SEC”) and its guidance on redeemable equity instruments, which has been codified in Accounting
Standards Codification (“ASC”) 480-10-S99, redemption provisions not solely within the control of a company require common
stock subject to redemption to be classified outside of permanent equity. Given that the Public Shares were issued with other freestanding
instruments (i.e., public warrants), the initial carrying value of Class A common stock classified as temporary equity will be the allocated
proceeds determined in accordance with ASC 470-20. The Class A common stock is subject to ASC 480-10-S99. If it is probable that the
equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period
from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest
redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying
amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the
changes immediately. The accretion or remeasurement will be treated as a deemed dividend (i.e., a reduction to retained earnings, or
in the absence of retained earnings, additional paid-in capital). While redemptions cannot cause the Company’s net tangible assets
to fall below $5,000,001, the Public Shares are redeemable and are classified as such on the balance sheet until such date that a redemption
event takes place.

Redemptions of the Company’s Public Shares
may be subject to the satisfaction of conditions, including minimum cash conditions, pursuant to an agreement relating to a business
combination. If the Company seeks stockholder approval of the business