Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2582

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 2582
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 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 25% premium (or at 50% premium 180 days after issuance) to the
greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days. Additionally,
the Company may voluntarily redeem the Series A Preferred Stock at a 20% premium to the greater of the conversion amount or the number
of shares multiplied by the highest closing price within the preceding 20 days.

The holders of the Series A Preferred Stock have
no voting rights.

In February 2024, the Company
consummated a private placement (the “Series A PIPE Financing”) of 10,039 shares of Series A Preferred Stock, warrants to
purchase 6,127 shares of Common Stock (the “February 2024 PIPE Common Warrants”) and warrants to purchase 2,500 shares of
Series A Preferred Stock (the “Preferred Warrants”) (See Note 9 below), pursuant to the Amended and Restated Securities Purchase
Agreement, dated February 14, 2024, by and among the Company, PBAX and certain accredited investors (the “Initial Investors”)
for aggregate cash proceeds to the Company of approximately $10.0 million, including cash previously received for bridge loan proceeds.

A portion of such Series
A Preferred Stock was issued as consideration for the cancellation of outstanding indebtedness, including a promissory note of PBAX amounting
to $1,555,