Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 45

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 45
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 of the Company’s control and are treated as equity.

On March 10, 2025, the Company
paid certain investors $395,000 for the redemption of 316 shares of the Series C Preferred Stock, which included $267,856 of the initial
purchase price and a cash redemption premium of $127,144. During the nine months ended September 30, 2025, the $127,144 of excess paid
over the initial purchase price was included in deemed dividend on the accompanying condensed consolidated statement of operations.

During the three months ended
June 30, 2025, 2,477 shares of Series C Preferred Stock were converted into 808,444 shares of Common Stock. The conversion ratios were
agreed upon by the Company and investors and ranged from $1.76 to $5.00 per share, which was lower than the conversion price based on
the Series C Certificate of Designations Alternate Conversion price. As a result, pursuant to ASC 470-20, upon initial down round triggering
events, the Company recorded a stock-based inducement expense of $707,300, which represents the fair value of excess common stock transferred
to the preferred shareholders based on an average per common share price of $7.50 and is reflected as part of other income (expense),
net, on the accompanying condensed consolidated statement of operations during the nine months ended September 30, 2025. Additionally,
subsequent to the initial triggering events, during the three and nine months ended September 30, 2025, Series C Preferred Stock was converted
by investors at a conversion price lower than the contractual conversion price of the Series C Preferred Stock then in effect. The initial
triggering events lowered the Series C Preferred Stock conversion price from $39.20 per share to $5.00 and from $5.00 per share to $1.76
per share. In connection with these down round triggering events, during the three and nine months ended September 30, 2025, the Company
recorded a deemed dividend of $0 and $9,340,120, respectively, which represents the fair value of excess common stock convertible and
issuable to the preferred shareholders upon the occurrence of the initial trigger event based on an average per share common share price
of $10.37, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying condensed consolidated
statement of operations for the three and nine months ended September 30, 202