Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 161

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 161
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 the Conversion Price
and the greater of $2,000.00 (the “Series A Conversion Price Floor”) or 80% of the 5-day volume weighted average price of
a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration rights, failure to deliver
shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series A Conversion Price Floor, if the
Series A Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common Stock, then the Conversion
Amount (as defined in the Certificates of Designations) is increased by a 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 10,089 shares of Series A Preferred
Stock, warrants to purchase 306 shares of Common Stock (the “February 2024 PIPE Common Warrants”) and warrants to purchase
2