Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 23

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 23
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, the Company did not record a gain or loss from change of fair value of the earnout
liability.

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

Fair value measurements– The Company’s assets and liabilities are carried at fair value. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the assumptions that market participants would use in pricing an asset or liability (the inputs) are based on a tiered fair value hierarchy consisting of three levels, as follows:

| Level 1 | – | Observable                                                                                                              
 inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. |

| Level 2 | – | Inputs                                                                                                                            
 (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability.      
 These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets 
 or liabilities in markets that are not active.                                                                                    |

| Level 3 | – | Unobservable                                                                                                                         
 inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market     
 participants would price the asset or liability. Consideration is given to the risk inherent in the valuation technique and the risk 
 inherent in the inputs to the model.                                                                                                 |

Carrying
amounts of certain of the 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.

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

|                   |     | June     
 30, 2025 |   |     |       |   |     |       |        |     |