Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 389

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 389
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or |       |   |
| Risk-free interest rate  |     |              |  5.40 | % |
| Expected life (in years) |     |              |  0.25 |   |
| Expected dividend yield  |     |              |     - | % |
| Expected volatility      |     |              | 65.90 | % |

The Company initially recorded the earnout liability
at estimated fair value using a Monte Carlo analysis and has revalued the Earnout liability at each subsequent period. The Monte Carlo
analysis used the following assumptions:

|                         |     | December 31, 
 2024         
 (Successor)  |      |   |     | February 14 
 2024        
 (Successor) |        |   |
|:------------------------|:----|:-------------|-----:|:--|:----|:------------|-------:|:--|
| Starting share price    |     | $            | 6.00 |   |     | $           | 490.00 |   |
| Tranche 1 trigger price |     | $            | 1.25 |   |     | $           |   3.20 |   |
| Tranche 2 trigger price |     | $            | 1.25 |   |     | $           |   3.85 |   |
| Contractual term        |     |              |  3.1 |   |     |             |    4.0 |   |
| Volatility              |     |              |  100 | % |     |             |     90 | % |
| Risk-free interest rate |     |              | 4.23 | % |     |             |   4.20 | % |

F-56

At December 31, 2024 for
the Successor and December 31, 2023 for the Predecessor, the fair value of earnout liability and derivative liabilities were classified
as follows:

The classification of the
fair value of the earnout liability and derivative liabilities and the change in the fair value measurement using significant inputs (Level
3) for the year ended December 31, 2023 and for the period from January 1, 2024 through February 14, 2024 for Predecessor and February
14, 2024 through December 31, 2024 for the Company is presented below:

| Preferred stock warrant liability (