Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 324

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 324
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 the life of Predecessor. The determination of the fair value requires management to make a significant estimate of the return on
research and development expenditures. Changes in these assumptions could have a significant impact on the fair value of the IPR&D.
The estimate of the return on research and development expenditures was based on multiple published studies analyzing actual returns
of research and development expenditures.

The following is a summary of the purchase price
calculation (unaudited).

| Number of shares of Common Stock                            |     |   |     50,000 |
|:------------------------------------------------------------|:----|:--|-----------:|
| Multiplied by PBAX’s share price, as of the Closing         |     | $ |     585.00 |
| Total                                                       |     | $ | 29,250,000 |
| Fair value of PBAX founder’s shares converted to shares     
 of Common Stock and transferred to Predecessor stockholders |     | $ |  5,118,750 |
| Fair value of contingent Common Stock consideration         |     | $ | 12,870,000 |
| Total Common Stock consideration                            |     | $ | 47,238,750 |
| Assumed liabilities                                         |     |   |  3,311,153 |
| Total purchase price                                        |     | $ | 50,549,903 |

The allocation of the purchase price was as follows (unaudited).

| Cash                                                      |     | $ |    963,855 |   |
| Net working capital (excluding cash and cash equivalents) |     |   | (1,819,514 | ) |
| Fixed assets                                              |     |   |    929,346 |   |
| Acquired in-process research and development              |     |   | 45,640,000 |   |
| Net assets acquired                                       |     |   | 45,713,687 |   |
| Loss on consolidation of VIE                              |     |   |  4,836,216 |   |
| Total purchase price                                      |     | $ | 50,549,903 |   |

<div align='center'>F-8</div>

In connection with the Merger, the transactions
that occurred concurrently with the closing date of the Merger were reflected “on the line”. “On the line” describes
those transactions triggered by the consummation of the Merger that are not recognized in the consolidated financial statements of the
Predecessor nor the Company as they are