Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 191

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 191
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7,700.00
  
    Contractual term (in years) 
     2.65  
    3.60 to 4.00
  
    Volatility 
     100% 
    90%
  
    Risk-free interest rate 
     3.82% 
    4.20% to 4.33%

27

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 six months ended June 30, 2025 (Successor),
for the period from January 1, 2024 through February 13, 2024 (Predecessor), and February 14, 2024 through December 31, 2024 for the Company
is presented below:

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Preferred stock warrant liability (Predecessor): 

    Balance at December 31, 2023 
    $-  
    $-  
    $320,117  
     320,117 
  
    Reclassification of warrant liability to equity 
     -  
     -  
     (320,117) 
     (320,117)
  
    Balance at February 13, 2024 
    $-  
    $-  
    $-  
    $- 

    Earnout liability (Successor): 

    Balance at March 31, 2024 
    $-  
    $-  
    $3,100,000  
    $3,100,000 
  
    Gain on revaluation of earnout liability 
     -  
     -  
     (2,900,000) 
     (2,900,000)
  
    Balance at June 30, 2024 
    $-  
    $-  
    $200,000  
    $200,000 

    Earnout liability (Successor): 

    Balance at February 14, 2024 
    $-  
    $-  
    $4,900,000  
    $4,900,000 
  
    Gain on revaluation of earnout liability 
     -  
     -  
     (4,700,000) 
     (