Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 147

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 147
---
 the estimated fair value of the 2,200,000 earn-out shares from equity to short term liability 
 as the shares are restricted until the trigger events occur. CERo estimates that the trigger     
 events are likely to occur within the year 2024.                                                 |

| G. | Represents                                                                                  
 Legacy CERo’s estimated transaction costs of $7.6 million, inclusive of advisory, banking,  
 legal and other professional fees that are expensed as a part of the Business Combination,  
 $3.8 million of which has already been reflected within the historical financial statements 
 of Legacy CERo and $1.5 million of which has already been paid. PBAX recorded an additional 
 $3.8 million additional fees related to the transaction. PBAX negotiated Fee Modification   
 Agreements with vendors resulting in a gain on settlement of expenses of $1.3 million and   
 payment in equity with a fair value of $3.0 million. PBAX paid $1.2 million in cash and has 
 deferred the remaining amounts owed.                                                        |

| H. | Repayment                                                                                          
 of PBAX working capital loan — related party. The working capital loan was converted               
 into shares of Series A Preferred Stock at a price of $10.00 per share, resulting in an additional 
 issuance of 1,555 Common Stock.                                                                    |

| I. | Represents                                                                                  
 the settlement of PBAX’s deferred underwriting fees related to its Initial Public Offering, 
 resulting in a reduction of $5,570,000 of deferred underwriting fees owed in exchange for   
 a $250,000 cash payment, issuance of 200,000 shares of Common Stock and further deferral    
 of $2.5 million. This resulted in a gain on the settlement of deferred underwriting fees    
 and associated reduction in retained deficit of $4.3 million.                               |

| J. | In February                                                                                                                             
 2024, CERo consummated a private placement of 10,039 shares of Series A Preferred Stock, 612,746 Series A Warrants and 2,500 Preferred  
 Warrants pursuant to the First Securities Purchase Agreement for aggregate cash proceeds to CERo of approximately $8.0 million, 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,