Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 54

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 54
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ercised
portion of their Series A Common Warrants for consideration equal to the Black-Scholes value thereof, which shall be settled, at the
option of the Company in either (i) the form of rights convertible into the consideration receivable by holders of the underlying shares
of common stock, based upon the value of the shares of the successor entity over a specified period or (ii) cash in an amount equal to
the Black-Scholes value.

The
Company’s Series A Common Warrants are exercisable into Common Stock and are recorded as equity.

September
2024 Series C Common Warrants (Successor)

The
Company’s 4,088 September 2024 Series C Common Warrants were initially exercisable for cash at an initial exercise price equal
to $196.00 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). The exercise price
is also subject to adjustment for the sale of Common Stock, or issuance or modification of options to result in the purchase of one share
of Common Stock at an effective price per share lower than the then current Series C Common Warrant exercise price. Additionally, should
the Company issue any variable priced convertible securities, the holders may elect an alternative exercise price that allows exercise
at the effective purchase price applicable to the convertible security.

The
September 2024 Series C Common Warrants are exercisable beginning six months after the issuance date (the “Initial Exercisability
Date”) and expire on the third anniversary of the Initial Exercisability Date. The Series C Common Warrants require “buy-in”
payments to be made by us for failure to deliver any shares of Common Stock issuable upon exercise.

If
at the time of exercise of the Series C Common Warrants, there is no effective registration statement registering the shares of the Common
Stock underlying the Series C Common Warrants, such warrants may be exercised on a cashless basis pursuant to their terms.

If
we issue options, convertible securities, warrants, shares, or similar securities to holders of Common Stock, each holder of Series C
Common Warrants has the right to acquire the same as if the holder had exercised its Series C Common Warrants. The holders of Series
C Common Warrants are entitled to receive any dividends paid or distributions made to our holders of Common Stock on an “as if
converted” basis.

The
Series C Common Warrants prohibit us from entering into specified fundamental transactions unless the successor entity assumes all of
our