Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 25

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 25
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--|:----|:--------|:--|:----|:--------|-------:|:----|:------|-------:|
|                   |     | Level 1           |   |     | Level 2 |   |     | Level 3 |        |     | Total |        |
| Earnout liability |     | $                 | - |     | $       | - |     | $       | 20,000 |     | $     | 20,000 |

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

| Preferred stock warrant liability (Predecessor): |     |   |            |   |
|:-------------------------------------------------|:----|:--|-----------:|:--|
| Balance at December 31, 2023                     |     | $ |    320,117 |   |
| Gain on revaluation of warrant liability         |     |   |   (320,117 | ) |
| Balance at February 14, 2024                     |     | $ |          - |   |
| Earnout liability (Successor):                   |     |   |            |   |
| Balance at February 14, 2024                     |     | $ |  4,900,000 |   |
| Gain on revaluation of earnout liability         |     |   | (4,870,000 | ) |
| Balance at September 30, 2024                    |     | $ |     30,000 |   |
| Earnout liability (Successor):                   |     |   |            |   |
| Balance at December 31, 2024                     |     | $ |     20,000 |   |
| Gain on revaluation of earnout liability         |     |   |          - |   |
| Balance at September 30, 2025                    |     | $ |     20,000 |   |

Research and development
– R&D costs consist primarily of salaries and benefits, including stock-based compensation, occupancy, materials and supplies,
contracted research, consulting arrangements, and other expenses incurred in the pursuit of the Company’s R&D programs. R&D
costs are expensed as incurred.

Stock-based compensation – The Company periodically issues common stock and stock options to officers, directors, and consultants for services rendered.
Stock-based compensation accounting requires the recognition of stock-based compensation expense, using a grant date fair value-based
method, for costs related