Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 148

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 148
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 including a promissory note of PBAX and CERo’s convertible notes. Certain conversion         
 features with an estimated fair value of $315,799 and warrants to purchase 612,746 common shares for $9.20 per share granted to certain 
 investors with a preliminary estimated fair value of $1,727,312 are presented as derivative liabilities. Net cash proceeds was $6.8     
 million for purchased shares and warrants, which resulted in $2.1 million being recorded as a warrant liability and $5.5 million        
 recorded as Series A Preferred stock.                                                                                                   |

| K. | As                                                                                         
 part of the PIPE Financing, CERo sold 2,500 Preferred Warrants to certain investors for an 
 aggregate of $2.0 million. Once the underlying shares of common stock are registered, such 
 investors must exercise such Preferred Warrants upon written notice of CERo.               |

| L. | As                                                                                             
 consideration for the establishment of the Keystone Equity Financing to sell up to the lesser  
 of 2,977,070 shares of newly issued shares of Common Stock and (ii) the Exchange Cap of 19.99% 
 ownership of the outstanding common stock of the Company, unless shareholders approve a higher 
 quantity, CERo issued 119,050 common shares with a value of $486,915 on February 15, 2024,     
 the first full day of trading of the combined entity. Another $250,000 of shares of Common     
 Stock will be issued at 90 and 180 days after the effectiveness of a registration statement    
 filed by CERo to register such shares.                                                         |

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Adjustments to Unaudited Pro Forma Condensed Combined Statement of Operations

The pro forma adjustments
included in the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2023, are as follows:

| AA. | Reflects                                                                       
 Legacy CERo’s and PBAX’s additional $3.8 million of transaction costs incurred 
 after December 31, 2023.                                                       |

| BB. | Reflects                                                                                     
 the recognition of expense associated with the fair value of the 119,050 shares of common    
 stock paid in association with the arrangement of the $25 million Keystone Equity Financing. |

| CC. | Reflects                                                                                    
 the $4.3 million gain on settlement of transaction expenses and deferred underwriting fees. |

| DD. | Reflects