Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 380

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 380
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 | ) |
| Denominator:                            |     |                                 |            |   |     |              |           |   |     |              |            |   |     |              |           |   |
| Weighted average shares outstanding     |     |                                 |  4,224,247 |   |     |              | 2,304,421 |   |     |              | 17,896,428 |   |     |              | 4,596,250 |   |
| Basic and diluted net income per share  |     | $                               |      (0.39 | ) |     | $            |     (0.39 | ) |     | $            |      (0.03 | ) |     | $            |     (0.03 | ) |

<div align='center'>F-39

PHOENIX BIOTECH ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2023</div>

Accounting for Warrants

The Company accounts for warrants as either equity-classified
or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance
in ASC 480 and ASC 815, Derivatives and Hedging. The assessment considers whether the instruments are free standing financial
instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the
requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common
stock and whether the instrument holders could potentially require “net cash settlement” in a circumstance outside of the
Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment,
was conducted at the time of warrant issuance and as of each subsequent period end date while the instruments are outstanding. Management
has concluded that the Public Warrants and Private Placement Warrants issued pursuant to the warrant agreement qualify for equity accounting
treatment.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information
within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective
for fiscal years beginning after December 15, 2024.