Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 342

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 342
---
 of March 31, 2025        |     |           | 3,405,479 |     | $        |    33.18 |     |                  | 4.06 |

NOTE 10 – FAIR VALUE MEASUREMENTS

The Company initially recorded
the earnout liability at estimated fair value using a Monte Carlo analysis and has revalued the Earnout liability at each subsequent period.
The Monte Carlo analysis used the following assumptions:

|                             |     | March 31,  
 2025       |        |   |     | February 14 
 2024 to     
 March 31,   
 2024        |                    |
|:----------------------------|:----|:-----------|-------:|:--|:----|:------------|:-------------------|
|                             |     | -Successor |        |   |     | -Successor  |                    |
| Starting share price        |     | $          |   0.73 |   |     |             | $307.00 to $490.00 |
| Tranche 1 trigger price     |     | $          | 125.00 |   |     |             | $3.20 to $3.91     |
| Tranche 2 trigger price     |     | $          | 150.00 |   |     |             | $3.85 to $4.70     |
| Contractual term (in years) |     |            |    2.9 |   |     |             | 3.9 to 4.0         |
| Volatility                  |     |            |    100 | % |     |             | 90%                |
| Risk-free interest rate     |     |            |   3.82 | % |     |             | 4.20% to 4.21%     |

F-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 three months ended March 31, 2025 and for the period from January 1, 2024 through February 14, 2024 for the Predecessor and
February 14, 2024 through December 31, 2024 for the Company is presented below:

| Preferred stock warrant liability (Predecessor): |     | Level 1 |   |     | Level 2 |   |     | Level