Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 333

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 333
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 Company’s financial instruments, including cash, restricted cash, and cash equivalents, prepaid expenses and other current
assets, accounts payable, and accrued liabilities approximate fair value due to their relatively short maturities.

F-9

Non-financial assets such
as property and equipment and operating lease right-of-use assets are evaluated for impairment and adjusted to fair value using Level 3
inputs only when impairment is recognized. Fair values are considered Level 3 when management makes significant assumptions in developing
a discounted cash flow model based upon a number of considerations including projections of revenues, earnings, and a discount rate. To
date, the Company has not recorded any adjustments to fair value related to impairment on property and equipment or operating lease right-of-use
assets.

On September 30, 2025 and
December 31, 2024, the fair value of the Company’s earnout liability (see Note 10 for details) was classified as follows:

|                   |     | September 30, 2025 |   |     |         |   |     |         |        |     |       |        |
|:------------------|:----|:-------------------|:--|:----|:--------|:--|:----|:--------|-------:|:----|:------|-------:|
|                   |     | Level 1            |   |     | Level 2 |   |     | Level 3 |        |     | Total |        |
| Earnout liability |     | $                  | - |     | $       | - |     | $       | 20,000 |     | $     | 20,000 |

|                   |     | December 31, 2024 |   |     |         |   |     |         |        |     |       |        |
|:------------------|:----|:------------------|:--|:----|:--------|:--|:----|:--------|-------:|:----|:------|-------:|
|                   |     | 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