Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 358

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 358
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 risk inherent in the inputs to the model. |

Carrying amounts of certain
of the Company’s financial instruments, including cash, restricted cash, and cash equivalents, prepaid expenses and other current
assets, accounts payable, accrued liabilities, and short-term notes payable approximate fair value due to their relatively short maturities.

F-39

Non-financial assets such as property and equipment are evaluated for
impairment and adjusted to fair value using Level 3 inputs only when impairment is recognized. Fair values are considered Level 3
when management makes significant assumptions in developing a discounted cash flow model based upon a number of considerations including
projections of revenues, earnings, and a discount rate. To date, the Company has not recorded any adjustments to fair value related to
impairment on property and equipment.

|                   |     | December 31, 2024 |   |     |         |   |     |         |        |     |       |        |
|:------------------|:----|:------------------|:--|:----|:--------|:--|:----|:--------|-------:|:----|:------|-------:|
|                   |     | Level 1           |   |     | Level 2 |   |     | Level 3 |        |     | Total |        |
| Earnout liability |     | $                 | - |     | $       | - |     | $       | 20,000 |     | $     | 20,000 |

|                                   |     | December 31, 2023 |   |     |         |   |     |         |         |     |       |         |
|:----------------------------------|:----|:------------------|:--|:----|:--------|:--|:----|:--------|--------:|:----|:------|--------:|
|                                   |     | Level 1           |   |     | Level 2 |   |     | Level 3 |         |     | Total |         |
| Preferred stock warrant liability |     | $                 | - |     | $       | - |     | $       | 320,117 |     | $     | 320,117 |

The change in the fair value measurement using
significant inputs (Level 3) is summarized below:

| Preferred stock warrant liability (Predecessor): |     |   |            |   |
|:-------------------------------------------------|:----|:--|-----------