Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 145

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 145
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 | $ | 45,718,778 |

| (1) | Share                                                                                                                                   
 consideration is calculated using a $4.90 reference price, which was the February 15, 2024 closing price of CERo Therapeutics Holdings, 
 Inc. on the first full day of trading.                                                                                                  |

For purposes of this pro
forma analysis, the above estimated purchase price has been allocated based on the relative fair value of the preliminary estimate of
the fair value of assets and liabilities to be acquired:

| Preliminary Purchase Price       
 Allocation:                      |     |   |            |   |
|:---------------------------------|:----|:--|-----------:|:--|
| In-process                       
 research and development         |     | $ | 45,101,193 |   |
| Long-term                        
 assets                           |     |   |  3,156,267 |   |
| Net                              
 working capital (Excluding cash) |     |   | (2,538,682 | ) |
| Net                              
 assets acquired                  |     | $ | 45,718,778 |   |

The guidance in ASC 805
requires an initial screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a
single asset or group of similar assets. If that screen is met, the set is not a business. The initial screen test was met as PBAX determined
that substantially all of the fair value was concentrated in the acquired IPR&D. The fair value of the IPR&D was determined to
be approximately $61 million before the purchase price was allocated among the assets and liabilities acquired, as shown above.

IPR&D represents the
R&D assets of Legacy CERo which were in-process, but not yet completed, and which PBAX has the opportunity to advance. Current accounting
standards require that the fair value of IPR&D projects acquired in an asset acquisition with no alternative future use be allocated
a portion of the consideration transferred and charged to expense at the acquisition date.

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Note 4. Adjustments to Unaudited Pro Forma Condensed Combined Financial Information

The unaudited pro forma
condensed combined financial information has been prepared to illustrate the effect of the Business Combination and related transactions
and has been prepared for informational purposes only.

The following unaudited
pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X as amended by the
final