Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 26

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 26
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 $11,700.00 
  
    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 

The
allocation of the purchase price was as follows:

    Cash 
    $963,855 
  
    Net working capital deficit (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 

12

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 consolidated statement of cash flow of $1.88 million consists
of $0.92 million from PBAX and $0.96 million from Predecessor. The number of shares of Common Stock issued and amounts recorded on the
line within stockholders’ deficit are reflected below to arrive at the opening consolidated balance sheet of the Company.

    Convertible  

    Preferred Stock  
    Series A  
    Additional  
    Stock  

    Series
    A  
    Common
    Stock  
    Paid-in  
    Subscription  
    Accumulated  

    Shares  
    Amount  
    Shares  
    Amount  
    Capital  
    Receivable  
    Deficit  
    Total 
  
    PBAX
    Closing Equity as of February 13, 2024