Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 377

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 377
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 596,692 |   |
| Valuation allowance for deferred tax assets                     |     |   |     (607,516 | ) |     |   |     (596,692 | ) |
| Total                                                           |     | $ |            — |   |     | $ |            — |   |

<div align='center'>F-38

PHOENIX BIOTECH ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023</div>

In assessing the realization of deferred tax assets,
management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The
ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary
differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax
assets, projected future taxable income and tax planning strategies in making this assessment. For the year ended December 31, 2023 and
2022, the valuation allowance was $607,516 and $596,692, respectively.

A reconciliation of the statutory federal income
tax provision (benefit) to the Company’s effective tax rate is as follows:

|                                         |     |     | December 31, 
         2023 |    |     |     | December 31, 
         2022 |   |
|:----------------------------------------|:----|:----|-------------:|:---|:----|:----|-------------:|:--|
| Statutory federal income tax rate       |     |     |         21.0 | %  |     |     |         21.0 | % |
| State taxes, net of federal tax benefit |     |     |          0.0 | %  |     |     |          0.0 | % |
| Valuation allowance                     |     |     |       (17.33 | )% |     |     |        852.7 | % |
| Income tax provision (benefit)          |     |     |         3.67 | %  |     |     |        873.7 | % |

Class A Common Stock Subject to Possible Redemption

The Company accounts for its Class A common
stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory
redemption (if any) are classified as a liability instrument and are measured