Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 356

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 356
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, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to % of the greater
of (i) the Market Value or (ii) the Newly Issued Price, and the $

F-44 PHOENIX BIOTECH ACQUISITION CORP. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023

Note 8 — Fair Value Measurements

The fair value of the Company’s
financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the
use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions
about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities
based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1: Quoted prices
in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for
the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Observable
inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities
and quoted prices for identical assets or liabilities in markets that are not active.

Level 3: Unobservable
inputs based on the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability.

At December 31, 2023, the
assets held in the Trust Account were held in money market funds. All of the Company’s investments held in the Trust Account are
classified as trading securities.

The following table presents
information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2023,
and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value.

December 31, 2023

| Assets:            |     | Level |   |     | Quoted    
 Prices in 
 Active    
 Markets   
 (Level 1) |           |     | Significant 
 Other       
 Observable  
 Inputs      
 (Level 2)   |   |     | Significant