Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1624

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1624
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 B Preferred Stock would have been convertible if the conversion price were equal to 80% of the lowest volume
weighted average price during the five trading days immediately prior to conversion. Such penalties and adjustments, which applied
during the period when substantially all of the conversions since the Business Combination described in the preceding paragraph
occurred as a result of a failure to file and cause the SEC to declare a registration statement with respect to the resale of the
underlying shares in a timely manner, have resulted and may in the future result in the issuance of shares of Common Stock at an
effective conversion price below the trading price of our Common Stock at the time of such conversion.

We cannot assure you that
we will remain in compliance with all of the terms of the Series A Preferred Stock, Series B Preferred Stock or Series C Preferred Stock
and that such penalties and adjustments will not apply in the future. In addition, we cannot assure you that we will not issue additional
convertible or other derivative securities with highly dilutive penalty or adjustment provisions. As described elsewhere in this Annual
Report, the Company needs to obtain financing to fund its research and development activities and clinical trials, as well as other operations.
Under challenging conditions in the equity capital markets, particularly for pre-commercialization biotech companies, we may have no viable
alternatives to agreeing to inclusion of such provisions in the terms of future financings.

If our security measures, or those of our
CROs, CDMOs, collaborators, contractors, consultants or other third parties upon whom we rely, are compromised or the security, confidentiality,
integrity or availability of our information technology, software, services, networks, communications or data is compromised, limited
or fails, we could experience a material adverse impact.

In the ordinary course of
our business, we may collect, process, receive, store, use, generate, transfer, disclose, make accessible, protect, secure, dispose of,
transmit, and share (collectively processing) proprietary, confidential and sensitive information, including personal data (including
health information), intellectual property, trade secrets, and proprietary business information owned or controlled by ourselves or other
parties. We may also share or receive sensitive information with our partners, CROs, CDMOs, or other third parties. Our ability to monitor
these third parties’ information security practices is limited, and these third parties may not have adequate information security
measures in place. If we (or a third party upon whom we rely) experience a security incident