Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113118
Chunk: 69

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 69
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 |    116.40 |     |                  |               2.77 |
| February 2025 Pre-funded Warrants       |     |           |  10,787 |     |          |     0.002 |     |                  | No expiration date |
| February 2025 Common Warrants           |     |           | 127,551 |     |          |     39.20 |     |                  |               4.36 |
| Outstanding as of September 30, 2025    |     |           | 159,724 |     | $        |    707.39 |     |                  |               4.14 |

NOTE 10 – FAIR VALUE MEASUREMENTS

On April 22, 2025, pursuant
to the Fourth Securities Purchase Agreement, the Company issued and sold, and the investors purchased, in a private placement (the “Fourth
PIPE Financing”), 6,250 shares of its Series D Preferred Stock to investors in exchange for the receipt of 1,000,279 shares of the
Stella Series D Preferred Stock, in which a portion of the Stella Series D Preferred Stock was owned by a related party investor (see
Note 13). The exchange of shares was in lieu of cash, the cost of which was initially included in investment in equity securities. The
fair value of Stella’s Series D Preferred Stock received was determined to be $500,000 as of the transaction date, based on the
subsequent sale of the 1,000,279 Stella Series D Preferred Stock $500,000 in cash, pursuant to a Stock Purchase Agreement dated August
20, 2025. Accordingly, the Company determined that the fair value of the equity securities on the date of the Fourth Securities Purchase
Agreement of April 21, 2025 was equal to $500,000. Additionally, the Company recognized the issuance of its Series D Preferred Stock to
investors at a cost of $500,000, which represented the fair value of the consideration received. The difference between the stated value
of the Company’s Series D Preferred Stock ($5.0 million) and the fair value of the consideration received ($500,000) was recorded
as a decrease to additional paid-in capital, which amounted to $4.5 million, during the three months ended June 30, 2025. The investment
in Stella’s Series D Preferred Stock was classified as an equity security without a readily determinable fair value and was