Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 377

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 377
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 the consideration received ($) was recorded
as a decrease to additional paid-in capital, which amounted to $ million, during the three months ended June 30, 2025. The investment
in Stella’s Series D Preferred Stock was classified as an equity security without a readily determinable fair value and was accounted
for under the measurement alternative in accordance with ASC 321, Investments – Equity Securities. Under this method,
the investment was initially recorded at cost, which was determined to be equal to the fair value of the consideration received, and is
subsequently adjusted for observable price changes in orderly transactions for the same or similar securities and for impairment, if any. This non-cash transaction during the three months ended June 30, 2025 did not impact the Company’s
cash flows and is disclosed as a non-cash investing and financing activity in the condensed consolidated statement of cash flows in accordance
with ASC 230, Statement of Cash Flows.

Earnout and warrant liabilities

The Company initially recorded
the earnout liability at estimated fair value using a Monte Carlo analysis and has revalued the earnout liability at each subsequent period.

|                             |     | September 30, 
 2025          |          |   |     | February 14   
 2024 to       
 September 30, 
 2024          |                        |
|:----------------------------|:----|:--------------|---------:|:--|:----|:--------------|:-----------------------|
|                             |     | -Successor    |          |   |     | -Successor    |                        |
| Starting share price        |     | $             |    14.60 |   |     |               | $180.00 to $9,800.00   |
| Tranche 1 trigger price     |     | $             | 2,500.00 |   |     |               | $2,500.00 to $6,400.00 |
| Tranche 2 trigger price     |     | $             | 3,000.00 |   |     |               | $3,000.00 to $7,700.00 |
| Contractual term (in years) |     |               |     2.40 |   |     |               | 3.40 to 4.00           |
| Volatility                  |     |               |      100 | % |     |               | 90%                    |
| Risk-free interest rate     |     |               |