Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 369

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 369
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, 2023. The excise tax is imposed on the repurchasing corporation itself,
not its stockholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the
shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are
permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same
taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”)
has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax.

Any redemption or other repurchase that occurs
after December 31, 2022, in connection with a business combination, extension vote or otherwise, may be subject to the excise tax. Whether
and to what extent the Company would be subject to the excise tax in connection with a business combination, extension vote or otherwise
would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the business
combination, extension or otherwise, (ii) the structure of a business combination, (iii) the nature and amount of any “PIPE”
or other equity issuances in connection with a business combination (or otherwise issued not in connection with a business combination
but issued within the same taxable year of a business combination) and (iv) the content of regulations and other guidance from the Treasury.
In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment
of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a business
combination and in the Company’s ability to complete a business combination.

On July 17, 2023, the Company redeemed 523,341
shares of Class A common stock tendered for redemption by the Public Stockholders for a total redemption amount of $5,638,879 in connection
with the implementation of the Extension. The Company evaluated the classification and accounting of the stock redemption under ASC 450,
“Contingencies” to determine whether the Company should currently recognize an excise tax obligation associated therewith.
ASC 450 states that when a loss contingency exists the likelihood that the future