Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 19

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 19
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i) the historical
operating results of CERo Therapeutics, Inc. prior to the Merger and (ii) the combined results of the Company, CERo Therapeutics Holdings,
Inc., following the Merger. The accompanying unaudited condensed consolidated financial statements include a Predecessor period, which
includes the period from January 1, 2024 to February 13, 2024 concurrent with the Merger, and Successor periods from February 14, 2024
through June 30, 2024, for the three months ended June 30, 2024, and for the three and six months ended June 30, 2025. A black line between
the Successor and Predecessor periods has been placed in the unaudited condensed consolidated financial statements and in the tables to
the notes to the condensed consolidated financial statements to highlight the lack of comparability between these two periods.

Use of estimates– The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses incurred during the reporting period. Items subject to such estimates and assumptions include the estimates of the fair value of investments in equity securities, the fair value of convertible preferred stock, common stock, and preferred stock warrant liability, the fair value of stock-based compensation expense, the present value of right-to-use assets and lease liabilities, the valuation of earnout liability, and the valuation allowance associated with deferred tax assets. Actual results could differ from those estimates.

Cash, restricted cash, and cash equivalents– The Company considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of June 30, 2025 and December 31, 2024, cash and cash equivalents consist of cash deposited with banks, including a money market sweep account, and restricted cash of $74,756 and $74,756, respectively, held on account by a financial institution as collateral for a demand letter of credit issued as a real estate security deposit.

Investment in equity securities -The Company’s investment in equity securities consists of Series D Preferred Stock of Stella Diagnostics, Inc. (“Stella”). Investments in equity securities are initially measured at cost. Cost is based upon either the cost of the investment or the estimated
market value of the investment at the time it was acquired, whichever can be more clearly determined