Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 50

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 50
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00    2.37   September 2024 Series C Common Warrants   81,753    0.04    2.96   December 2024 Common Warrants   84,061    5.61    3.23   January 2025 Common Warrants   163,853    5.82    3.27   February 2025 Pre-funded Warrants   426,740    0.0001    -   February 2025 Common Warrants   2,551,020    1.96    4.86   Outstanding as of March 31, 2025   3,405,479   $33.18    4.06  

NOTE 10 – FAIR VALUE MEASUREMENTS

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.
The Monte Carlo analysis used the following assumptions:

    February 14 

    March 31, 2025  
    2024 to March 31, 2024 

    (Successor)  
    (Successor) 
  
    Starting share price 
    $0.73  
     $307.00 to $490.00 
  
    Tranche 1 trigger price 
    $125.00  
     $3.20 to $3.91 
  
    Tranche 2 trigger price 
    $150.00  
     $3.85 to $4.70 
  
    Contractual term (in years) 
     2.9  
     3.9 to 4.0 
  
    Volatility 
     100% 
     90%
  
    Risk-free interest rate 
     3.82% 
     4.20% to 4.21% 

26

The classification of the
fair value of the earnout liability and derivative liabilities and the change in the fair value measurement using significant inputs (Level
3) for the three months ended March 31, 2025 and for the period from January 1, 2024 through February 14, 2024 for the Predecessor and
February 14, 2024 through December 31,