Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 178

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 178
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 and for any period of time. If 90 days or 180 days following the
occurrence of the effective date of the registration statement filed pursuant to the First PIPE Registration Rights Agreement, the Conversion
Price then in effect is greater than the greater of $2,000.00 and the Market Price (as defined in the Series A Certificate of Designations)
then in effect (the “Adjustment Price”), the Conversion Price shall automatically lower to the Adjustment Price. In connection
with such adjustment provisions, the Conversion Price was reset to $2,000.00.

Alternate Conversion:
Following the occurrence and during the continuance of a Trigger Event (as defined below), each holder may alternatively elect to convert
the Series A Preferred Stock at the “Alternate Conversion Price” equal to the lesser of the Conversion Price and the greater
of $2,000.00 (the “Series A Conversion Price Floor”) or 80% of the 5-day volume weighted average price of a share of Common
Stock. Trigger Events include customary terms related to exchange listing, registration rights, failure to deliver shares on conversion
or exercise of derivative instruments, or insolvency. Notwithstanding the Series A Conversion Price Floor, if the Series A Conversion
Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common Stock, then the Conversion Amount (as
defined in the Certificates of Designations) is increased by a multiplier resulting in the convertibility of the shares of Series A Preferred
Stock into the number of shares of Common Stock that would have been issuable if the Alternate Conversion Price had been equal to such
lower volume weighted average price. Such multiplier was in effect from when the registration statement for the resale of shares of Common
Stock issuable upon conversion of the Series A Preferred Stock was declared effective on July 5, 2024 because such effectiveness was after
the applicable deadline therefore and, as a result of such multiplier, such registration statement registered fewer than the maximum number
of shares of Common Stock issuable upon such conversion. Such multiplier ceased to apply on January 6, 2025, the 20th trading
day after the effectiveness of the additional registration statement registering the resale of additional shares of Common Stock issuable
upon conversion of the Series A Preferred Stock resulting from such shortfall, which additional registration statement was declared effective
on December 5, 2024.

Redemptions: Upon
bankruptcy or liquidation, Series A Preferred Stock will be redeemed at a