Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 370

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 370
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 event(s) will confirm the loss or impairment of an
asset, or the incurrence of a liability can range from probable to remote. Contingent liability must be reviewed at each reporting period
to determine appropriate treatment. The Company evaluated whether a United States excise tax obligation should be recognized currently
related to the stock redemption and concluded that this obligation should be recognized. As of December 31, 2023, the Company recorded
$56,389 of excise tax liability calculated as 1% of shares redeemed on July 17, 2023. Any reduction to this liability resulting from
either a subsequent stock issuance or an event giving rise to an exception that occurs within this tax year, will be recognized in the
period (including an interim period) that such stock issuance or event giving rise to an exception occurs.

Liquidity and Going Concern

As of December 31, 2023, the Company had $96,873
in its operating bank accounts, $8,436,311 in marketable securities held in the Trust Account to be used for a business combination or
to repurchase or redeem its Public Shares in connection therewith and a working capital deficit of $5,049,122.

On May 9, 2023, the Company received a notice from
the IRS stating an additional $182,308 of federal income taxes were due by May 22, 2023. The Company made this payment on June 23, 2023.

The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of
liabilities in the normal course of business. The Company’s ability to continue as a going concern is dependent on its ability
to raise additional capital to fund its research and development (“R&D”) activities and meet its obligations on a timely
basis. Since inception, the Company has incurred net losses and operating cash flow deficits, resulting in an accumulated deficit of
$14.2 million as of December 31, 2023. On February 14, 2024, the Company acquired the assets of CERo Therapeutics, Inc., closed
a private placement with gross proceeds of $9.98 million, and assumed the R&D operations of CERo Therapeutics. Additional funds are
necessary to maintain current operations and to continue R&D activities. However, there can be no assurance that sufficient funding
will be available to allow the Company to successfully continue its R&D activities