Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 131

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 131
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 evaluated the accounting
treatment of our Earnout Shares (as defined below) subject to forfeiture if the applicable conditions to transferability thereof are
not satisfied and determined to classify such shares as liabilities measured at fair value. The fair value of such shares is remeasured
on a quarterly basis over the earn-out period with changes in the estimated fair value recorded in Other (expense) income on the condensed
consolidated statement of operations and comprehensive loss. Due to the recurring fair value measurement, we expect that we will recognize
non-cash gains or losses on our Earnout Shares each reporting period and that the amount of such gains or losses could materially impact
or cause volatility in our financial results.

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USE OF PROCEEDS</div>

We estimate that we will
receive net proceeds of approximately $4.1 million, after deducting the placement agent fees and estimated offering expenses payable by
us and assuming no exercise of Offered Common Warrants.

We currently intend to use
the net proceeds from this offering, together with our existing cash resources, toward the following activities in their order of importance:

| ● | advancement                   
 of our clinical programs; and |

| ● | fund working capital and other general                                                                                            
 corporate purposes, which may include the redemption of shares of our outstanding Series A, Series B or Series C Preferred Stock. |

This expected use of net
proceeds from this offering represents our intentions based upon our current plans and business conditions. We have not determined the
exact amounts we may spend on any of the items listed above or the timing of these expenditures.

Our management will retain
broad discretion over the allocation of the net proceeds from this offering. We may find it necessary or advisable to use the net proceeds
from this offering for other purposes, and we will have broad discretion in the application of net proceeds. Although we may use a portion
of the net proceeds of this offering for the acquisition or licensing, as the case may be, of additional technologies, other assets or
businesses, we have no current understandings, agreements or commitments to do so.

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MARKET PRICE AND DIVIDEND INFORMATION</div>

Market Price

Our Common Stock and Public
Warrants are listed on Nasdaq under the symbols “CERO” and “CEROW,” respectively.

The closing price of our
Common Stock and our Public Warrants as reported on Nasdaq on February 5, 2025 was $1.96 per share