Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113118
Chunk: 43

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 43
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Due to delayed filing and
declaration of effectiveness relative to the deadlines defined in the Registration Rights Agreement, through December 31, 2024, the Company
accrued a registration rights penalty amounting to $55,000, which is payable in cash to the holders of Series B Preferred Stock
and included in accrued liabilities on the accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31,
2024.

During the three months ended
September 30, 2024, 140 shares of Series B Preferred Stock were converted into 622 shares of Common Stock.

During the three months ended March 31, 2025, 75 shares of Series B
Preferred Stock were converted into 2,500 shares of Common Stock. The conversion ratio was based on the Series B Certificate of Designations
and included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within
the preceding 20 days. During the three months ended June 30, 2025, 198 shares of Series B Preferred Stock were converted into 42,258
shares of Common Stock. The conversion ratio of 23 Series B Preferred Stock was based on the Series B Certificate of Designations and
included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within
the preceding 20 days. As a result of the 25% premium, the Company recorded a deemed dividend of $0 and $30,250, which represents the
fair value of excess common stock transferred to the preferred shareholders based on an average per share common share price of $37.50,
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, 2025, respectively. Additionally, during the nine months ended September
30, 2025, the Company converted 175 shares of Series B Preferred stock at a conversion price lower than the contractual conversion price
of the Series B Preferred Stock. These shares were converted after the expiration of a prior Trigger Event. The lower conversion price
lowered the Series B Preferred Stock conversion price from the contractual conversion price to $1.76 per share. In connection with this
down round triggering event, during the nine months ended September 30, 2025, the Company recorded a deemed dividend of $482,953, which
represents the fair