Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 55

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 55
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 No warrants will be exercisable
for cash unless the Company has an effective and current registration statement covering the Common Stock issuable upon exercise of the
warrants and a current prospectus relating to such Common Stock. The Public and Private Placement Warrants were registered under a resale
registration statement on Form S-1 (File No. 333-279156), which was declared effective by the Securities and Exchange Commission on July
5, 2024.

Notwithstanding the foregoing,
Public and Private Placement Warrant holders may, during any period when the Company shall have failed to maintain an effective registration
statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided
that such exemption is available. If that exemption, or another exemption, is not available, holders will not be able to exercise their
warrants on a cashless basis. The Public and Private Placement Warrants will expire five years after the Merger or earlier upon redemption
or liquidation.

Once the warrants became
exercisable, the Company may, with 30 days prior notice, redeem the Public Warrants in whole and not in part, at a price of $0.20 per
warrant if the shares underlying the warrants are registered and if the closing price of Common Stock equals or exceeds $36,000.00 for
20 of the prior 30 trading days. If the Company calls the Public Warrants for redemption, management will have the option to require all
holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

The exercise price and number
of shares of Common Stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a
stock dividend, extraordinary dividend or recapitalization, reorganization, merger, or consolidation. However, the warrants will not be
adjusted for issuances of Common Stock at a price below their respective exercise prices. Additionally, in no event will the Company be
required to net cash settle the warrants.

As discussed above, the Company
accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments’
specific terms and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging. Management has concluded that the
Public Warrants issued pursuant to the warrant agreement qualify for equity accounting treatment.

Series A Common Warrants (Successor) - February 2024