Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 429

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 429
---
     |   |       - |
| Balance as of December 31, 2023                         |     | $ | 459,000 |

<div align='center'>F-65

CERo Therapeutics, Inc.

Notes to Financial Statements</div>

NOTE 12 – COLLABORATIVE AGREEMENTS

The Company entered into a Collaboration and
Option Agreement (the “Collaboration Agreement”) dated March 3, 2020. The Collaboration Agreement granted a royalty-free,
nonexclusive, worldwide license to share each party’s technologies to create bi-functional T-cells. The Company was responsible
for all employee and other internal costs incurred in the performance of all the Company’s R&D activities, with approved cost
overruns funded by the collaborative partner. At the end of the research project, the collaborative partner will be granted the option
to enter into an exclusive license for the further development of the combined drug. The Company recognizes the allocation of the costs
incurred with respect to the jointly conducted activities as a component of the related expense in the period incurred. The Company ensured
that the presentation, classification, and disclosure requirements related to the Collaboration Agreement were followed. Costs incurred
related to the Collaboration Agreement are included in R&D costs in the statements of operations, and expense reimbursements of approximately
$0 and $182,577 were netted against those costs for the years ended December 31, 2023 and 2022, respectively. The Collaboration
Agreement was terminated on March 3, 2023.

NOTE 13 – 401(k) RETIREMENT SAVINGS PLAN

The Company sponsors a 401(k) defined contribution
plan covering eligible employees who elect to participate. The Company is allowed to make discretionary profit sharing and 401(k) matching
contributions as defined in the plan and as approved by the Board of Directors. The Company made $63,344 and $139,804 contributions during
2023 and 2022, respectively.

NOTE 14 – RELATED-PARTY TRANSACTIONS

A founder, investor and board observer, has a
family relation with the chief executive officer and the chief financial officer in office in 2022. At December 31, 2023, this individual
maintained 16.33% of the outstanding and 14.99% of the fully diluted ownership of the Company. In addition, this individual was under
a consulting contract in 2022 to advise on research and clinical strategy as the head of the scientific