Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 300

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 300
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 in obtaining technology licenses
are charged to research and development expense as IPR&D if the technology licensed has not reached technological feasibility and
has no alternative future use. The IPR&D recorded at the Closing of $ million is reflected “on the line” in the
Company’s opening accumulated deficit. To estimate the value of the acquired IPR&D, the Company used the avoided cost method,
which calculates a present value of a % return on research and development effort applied to research and development expenditures over
the life of Predecessor. The determination of the fair value requires management to make a significant estimate of the return on research
and development expenditures. Changes in these assumptions could have a significant impact on the fair value of the IPR&D. The estimate
of the return on research and development expenditures was based on multiple published studies analyzing actual returns of research and
development expenditures.

| Number of shares of Common Stock                            |     |   |     50,000 |
|:------------------------------------------------------------|:----|:--|-----------:|
| Multiplied by PBAX’s share price, as of the Closing         |     | $ |     585.00 |
| Total                                                       |     | $ | 29,250,000 |
| Fair value of PBAX founder’s shares converted to shares     
 of Common Stock and transferred to Predecessor stockholders |     | $ |  5,118,750 |
| Fair value of contingent Common Stock                       
 consideration                                               |     | $ | 12,870,000 |
| Total Common Stock consideration                            |     | $ | 47,238,750 |
| Assumed liabilities                                         |     |   |  3,311,153 |
| Total purchase price                                        |     | $ | 50,549,903 |

| Cash                                                      |     | $ |    963,855 |   |
| Net working capital (excluding cash and cash equivalents) |     |   | (1,819,514 | ) |
| Fixed assets                                              |     |   |    929,346 |   |
| Acquired in-process research and development              |     |   | 45,640,000 |   |
| Net assets acquired                                       |     |   | 45,713,687 |   |
| Loss on consolidation of VIE                              |     |   |  4,836,216 |   |
| Total purchase price                                      |     | $ | 50,549,903 |   |

F-8

In connection with