Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 23

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 23
---
 that are not separately
disaggregated quantitatively, disclose the total amount of selling expenses and, in annual reporting periods, provide a definition of
what constitutes selling expenses. This pronouncement is effective for fiscal years beginning after December 15, 2026, and interim periods
within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing this ASU to
determine the impact on its consolidated financial statements.

Management
does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect
on the Company’s consolidated financial statements.

NOTE
3 – BUSINESS COMBINATION

Business
Combination Agreement - On June 6, 2023, CERo Therapeutics, Inc. (“Predecessor”), which was incorporated in Delaware
on September 23, 2016, and based in South San Francisco, California, entered into the BCA with PBCE Merger Sub, Inc., a wholly-owned
subsidiary of PBAX, and PBAX, with the surviving operating entity being named CERo Therapeutics Holdings, Inc. (“Successor”
or the “Company”), and such transaction, the “Business Combination” or “Merger”.

The
Company is focused on genetically engineering human immune cells to fight cancer. The Predecessor focused on developing the CERo therapeutic
platform and had not yet begun clinical development or product commercialization. The Company’s efforts will focus on continued
product development, including clinical development, to support regulatory approval to commercialize and subsequent product commercialization.

The
BCA was amended on February 5, 2024 and again on February 13, 2024. The Merger closed on February 14, 2024 (the “Closing”),
at which time the following occurred:

1.The outstanding shares of Predecessor’s preferred stock were converted into 2,208 shares of Common Stock, par value $0.0001 per share (the “Common Stock”), valued at $21,635,926.

2.The outstanding shares of Predecessor’s common stock were converted into 292 shares of Common Stock, valued at $2,864,074.

3.Each holder of Predecessor’s common stock received a pro rata portion of up to 600 earnout shares of restricted Common Stock, valued at $5,880,000, 500 shares of which are subject to vesting upon the achievement of certain