Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 295

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 295
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 return on research and development effort applied to research and development expenditures over
the life of Predecessor. The determination of the fair value requires management to make a significant estimate of the return on research
and development expenditures. Changes in these assumptions could have a significant impact on the fair value of the IPR&D. The estimate
of the return on research and development expenditures was based on multiple published studies analyzing actual returns of research and
development expenditures.

| Number of shares of Common Stock                            |     |   |     50,000 |
|:------------------------------------------------------------|:----|:--|-----------:|
| Multiplied by PBAX’s share price, as of the Closing         |     | $ |     585.00 |
| Total                                                       |     | $ | 29,250,000 |
| Fair value of PBAX founder’s shares converted to shares     
 of Common Stock and transferred to Predecessor stockholders |     | $ |  5,118,750 |
| Fair value of contingent Common Stock                       
 consideration                                               |     | $ | 12,870,000 |
| Total Common Stock consideration                            |     | $ | 47,238,750 |
| Assumed liabilities                                         |     |   |  3,311,153 |
| Total purchase price                                        |     | $ | 50,549,903 |

| Cash                                                      |     | $ |    963,855 |   |
| Net working capital (excluding cash and cash equivalents) |     |   | (1,819,514 | ) |
| Fixed assets                                              |     |   |    929,346 |   |
| Acquired in-process research and development              |     |   | 45,640,000 |   |
| Net assets acquired                                       |     |   | 45,713,687 |   |
| Loss on consolidation of VIE                              |     |   |  4,836,216 |   |
| Total purchase price                                      |     | $ | 50,549,903 |   |

F-8

In connection with the Merger, the transactions
that occurred concurrently with the closing date of the Merger were reflected “on the line”. “On the line” describes
those transactions triggered by the consummation of the Merger that are not recognized in the consolidated financial statements of the
Predecessor nor the Company as they are not directly attributable to either period but instead were contingent on the Merger. The opening
cash balance in the