Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 432

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 432
---
,818 |     | $        |  8,192.20 |     |                  | 3.60 |

F-59

NOTE 10 – FAIR VALUE MEASUREMENTS

Predecessor estimated the fair value of the Predecessor
Series A Preferred Stock Warrants at December 31, 2023, using Black-Scholes with the following assumptions:

|                          |     | December 31, |       |   |
|                          |     |         2023 |       |   |
|                          |     | -Predecessor |       |   |
| Risk-free interest rate  |     |              |  5.40 | % |
| Expected life (in years) |     |              |  0.25 |   |
| Expected dividend yield  |     |              |     - | % |
| Expected volatility      |     |              | 65.90 | % |

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.

|                         |     | December 31, 
 2024         
 (Successor)  |        |   |     | February 14 
 2024        
 (Successor) |          |   |
|:------------------------|:----|:-------------|-------:|:--|:----|:------------|---------:|:--|
| Starting share price    |     | $            | 120.00 |   |     | $           | 9,800.00 |   |
| Tranche 1 trigger price |     | $            |  25.00 |   |     | $           |    64.00 |   |
| Tranche 2 trigger price |     | $            |  25.00 |   |     | $           |    77.00 |   |
| Contractual term        |     |              |    3.1 |   |     |             |      4.0 |   |
| Volatility              |     |              |    100 | % |     |             |       90 | % |
| Risk-free interest rate |     |              |   4.23 | % |     |             |     4.20 | % |

F-60

At December 31, 2024 for
the Successor and December 31, 2023 for the Predecessor, the