Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2709

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2709
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, at the option of the Holder, into such
Corporate Event Consideration applicable to such Fundamental Transaction equal in value to the Aggregate Black Scholes Value issuable
upon conversion of the Rights to be determined in increments of 10% (or such greater percentage as the Holder may notify the Company from
time to time) of the portion of the Aggregate Black Scholes Value attributable to such Shares (the “Share Value Increment”),
with the aggregate number of Shares issuable upon exercise of the Rights with respect to the first Successor Share Value Increment determined
based on 70% of the Closing Bid Price of the Shares on the date the Rights are issued and on each of the nine subsequent Trading Days,
in each case, the aggregate number of additional Shares issuable upon exercise of the Rights shall be determined based upon a Share Value
Increment at 70% of the Closing Bid Price of the Shares in effect for such corresponding Trading Day (such ten (10) Trading Day period
commencing on, and including, the date the Rights are issued, the “Rights Measuring Period”)), or (II) in cash; provided,
that the Company shall not consummate a Fundamental Transaction if the Corporate Event Consideration includes capital stock or other equity
interest (the “Successor Shares”) either in an entity that is not listed on an Eligible Market or an entity in which the daily
share volume for the applicable Successor Shares for each of the twenty Trading Days prior to the date of consummation of such Fundamental
Transaction is less than the aggregate number of Successor Shares issuable to the Holder upon conversion in full of the applicable Rights
(without regard to any limitations on conversion therein, assuming the exercise in full of the Rights on the date of issuance of the Rights
and assuming the Closing Bid Price of the Successor Shares for each Trading Day in the Rights Measuring Period is the Closing Bid Price
on the Trading Day ended immediately prior to the time of consummation of the Fundamental Transaction).

F-25

The Company’s December
2024 Common Warrants are exercisable into Common Stock, which has no cash redemption features that require liability treatment. The Company
has recorded the December 2024 Common Warrants as equity.

On December 23, 2024, in connection with the
issuance of the December 2024 Warrants, the Company calculated the fair value of such warrants using the Black-Scholes option-pricing
model, and the Company determined that the aggregate total fair value of