Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 138

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 138
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 plus additional cash proceeds of $2.0 million on the mandatory exercise of the Preferred Warrants upon the registration of the underlying       
 shares of Common Stock. A portion of such Series A Preferred Stock was issued as consideration for the cancellation of outstanding indebtedness 
 or securities of the Company, 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 $7.6 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.                                                                                            |

82 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