Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 142

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 142
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 of Series B Preferred Stock and the exercise and conversion of 2,500 Preferred Warrants.                                      |

The Business Combination
is being accounted for using the asset acquisition method in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”). Under this method of accounting, we have determined that PBAX is the accounting acquirer as PBAX
is (i) the entity issuing its own shares to consummate the Business Combination, (ii) the senior management team will primarily be comprised
of PBAX’s existing management team, and (iii) PBAX’s assets were significantly larger than Legacy CERo’s, based on
the terms of the Business Combination Agreement. The merger is being accounted for as an asset acquisition as substantially all of the
fair value is concentrated within in-process research and development (“IPR&D”), an intangible asset. Legacy CERo’s
assets (except for cash) and liabilities will be measured and recognized as an allocation of the transaction price based on their relative
fair values as of the transaction date with any value associated with IPR&D with no alternative future use being expensed.

<div align='center'>76

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

AS OF DECEMBER 31, 2023

(In thousands)</div>

|                                                                    |     | As           
 of           
 December 31, 
 2023         
 Phoenix      
 Biotech      
 Acquisition  
 Corp.        
 (Historical) |             |   |     | CERo          
 Therapeutics, 
 Inc.          
 (Historical)  |             |   |     | Transaction 
 Accounting  
 Adjustments |             |   |   |     | As           
 of           
 December 31, 
 2023         
 Pro Forma    
 Combined     |             |   |
|:-------------------------------------------------------------------|:----|:-------------|------------:|:--|:----|:--------------|------------:|:--|:----|:------------|------------:|:--|:--|:----|:-------------|------------:|:--|
|                                                                    |     | -Unaudited   |             |   |     | -Unaudited    |             |   |     | -Unaudited  |             |   |   |     | -Unaudited   |             |   |
| ASSETS                                                             |     |              |             |   |     |               |             |   |     |             |             |