Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 20

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 20
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 fair value of convertible preferred stock, common stock, and preferred stock warrant liability, the fair value of stock-based compensation
expense, the present value of right-to-use assets and lease liabilities, the valuation of earnout liability, the value of deemed dividends,
and the valuation allowance associated with deferred tax assets. Actual results could differ from those estimates.

Cash, restricted cash, and cash equivalents – The Company considers all highly liquid investments with an original maturity from the date of purchase
of three months or less to be cash equivalents. As of September 30, 2025 and December 31, 2024, cash and cash equivalents consist
of cash deposited with banks, including a money market sweep account, and restricted cash of $74,756 and $74,756, respectively, held on
account by a financial institution as collateral for a demand letter of credit issued as a real estate security deposit.

Investment in equity securities - The Company’s investment in equity securities consisted of Series D Preferred Stock of Stella Diagnostics, Inc. (“Stella”),
which was held by the Company as of June 30, 2025 and sold during the three months ended September 30, 2025. Investments in equity securities
are initially measured at cost. Cost is based upon either the cost of the investment or the estimated market value of the investment at
the time it was acquired, whichever can be more clearly determined. The Company has elected the measurement alternative for equity securities
without readily determinable fair values. Under this alternative, if the Company identifies an observable price change in an orderly transaction
for an identical or similar investment of the same issuer, the Company measures the equity security at fair value as of the date that
the observable transaction occurred. Any adjustments resulting from observable price changes are recognized in earnings. The Company monitors
these investments for changes in observable prices from orderly transactions and assesses them for impairment. If an equity security is
deemed to be impaired, an impairment loss is recognized in earnings, measured as the difference between the investment’s cost and
its fair value at the impairment assessment date.

Concentration of credit risk – Financial instruments that potentially subject the Company to credit risk consist primarily of cash, restricted cash,
and cash equivalents. The Company’s cash, restricted cash, and cash equivalents are on deposit with two financial institutions that
management believe are of sufficiently high credit quality. Deposits at any of the Company’s financial institutions may, at times,
exceed federal insured limits.

Property and equipment
– Property and equipment