Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2114

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 2114
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the “Common Stock”), valued at $21,635,926.

2.The outstanding shares of Predecessor’s common stock were converted into 5,845 shares of Common
Stock, valued at $2,864,074.

    3. Each holder of Predecessor’s common stock received a pro rata portion of up to 12,000 earnout shares of restricted Common Stock (the “BCA Earnout Shares”), valued at $5,880,000, 10,000 of which are subject to vesting upon the achievement of certain stock price-based earnout targets and 2,000 of which are subject to vesting upon a change of control, respectively. 

    4. Certain holders of Predecessor’s common stock received a pro rata portion of 8,750 earnout shares of Common Stock (the “Reallocation Shares”), valued at $4.29 million, which became fully vested upon the Closing. 

5.Certain holders of Predecessor’s common stock and convertible bridge notes received a pro rata portion
of 10,000 earnout shares (the “IND Earnout shares”) of restricted Common Stock, valued at $4,900,000, which vested when the
Company filed an investigational new drug (“IND”) application with the Food and Drug Administration (“FDA”). The
earning of these shares was accompanied by a forfeiture of 10,000 restricted shares of Common Stock held by the sponsor following receipt
of an acknowledgement notice by the Sponsor.

6.Each outstanding Predecessor option was converted into an option to
purchase a number of shares of Common Stock, equal to the Predecessor’s common stock underlying the option multiplied by the Exchange
Ratio factor of 0.064452, at an exercise price per share equal to the Predecessor option exercise price divided by the Exchange Ratio
factor.

7.Each warrant to purchase the Predecessor’s preferred stock was converted into a warrant to acquire
a number of shares of Common Stock obtained by dividing the warrant as-if-exercised liquidation preference by $1,000.00, with the exercise
price equal to the total Predecessor warrant exercise amount divided by the number of shares of Common Stock issuable upon exercise.

8.The Predecessor’s bridge notes automatically converted into shares of the Company’s Series
A Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”), at a conversion price equal to $750 per share
of