Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 402

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 402
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 |     | December 31, 2023 |   |     |         |   |     |         |         |     |       |         |
|:----------------------------------|:----|:------------------|:--|:----|:--------|:--|:----|:--------|--------:|:----|:------|--------:|
|                                   |     | Level 1           |   |     | Level 2 |   |     | Level 3 |         |     | Total |         |
| Preferred stock warrant liability |     | $                 | - |     | $       | - |     | $       | 320,117 |     | $     | 320,117 |

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

| Preferred stock warrant liability (Predecessor): |     |   |            |   |
|:-------------------------------------------------|:----|:--|-----------:|:--|
| Balance at January 1, 2023                       |     | $ |    610,381 |   |
| Gain on revaluation of warrant liability         |     |   |   (290,264 | ) |
| Balance at December 31, 2023                     |     |   |    320,117 |   |
| Gain on revaluation of warrant liability         |     |   |   (320,117 | ) |
| Balance at February 14, 2024                     |     | $ |          - |   |
| Earnout liability (Successor):                   |     |   |            |   |
| Balance at February 14, 2024                     |     | $ |  4,900,000 |   |
| Gain on revaluation of earnout liability         |     |   | (4,880,000 | ) |
| Balance at December 31, 2024                     |     | $ |     20,000 |   |

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