Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 173

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 173
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 be diluted, and the terms of these securities may include liquidation or other
preferences that could adversely affect your rights as a common stockholder. Debt financing and preferred equity financing, if available,
may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional
debt, making capital expenditures or declaring dividends.

If we raise additional funds
through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may be required
to relinquish valuable rights to our research programs or product candidates or grant licenses on terms that may not be favorable to us
or that may be at less than the full potential value of such rights. If we are unable to raise additional funds through equity or debt
financings or other arrangements with third parties when needed, we may be required to delay, limit, reduce or terminate our drug development
or future commercialization efforts or grant rights to third parties to develop and market product candidates that we would otherwise
prefer to develop and market ourselves.

48

The issuance of shares of our Common Stock
upon conversion or exercise of our outstanding Preferred Shares and Common Warrants and other securities that we may issue in future financing
transactions may result in substantial dilution to our stockholders.

As of April 11, 2025,
the Company currently has outstanding (i) 1,429 shares of Series A Preferred Stock with a conversion value of approximately $1.4
million, convertible into shares of Common Stock at a conversion rate of the stated value thereof divided by a current effective
conversion price of $1.96; (ii) 198 shares of Series B Preferred Stock with a conversion value of approximately $0.2 million,
convertible into shares of Common Stock at a conversion rate of the stated value thereof divided by a floating conversion price of
80% of the lowest volume weighted average price during the five trading days immediately prior to conversion; (iii) 2,537 shares of
Series C Preferred Stock with a stated value of approximately $2.5 million, convertible into shares of Common Stock at a conversion
rate of the stated value thereof divided by a conversion price of $1.96 (iv) Series A Warrants to purchase 6,127 shares of Common
Stock at an exercise price of $139.00 per share; (v) Series C Warrants to purchase 81,753 shares of Common Stock at an exercise
price of $0.04; (vi) December 2024 and January