Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 184

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 4
Chunk 184
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From time to time, we may become subject to various
legal proceedings and claims that arise in the ordinary course of our business activities. Although the results of litigation and claims
cannot be predicted with certainty, as of March 31, 2025, we do not believe we are party to any claim or litigation the outcome of which,
if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our
business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of
management resources and other factors.

Item 1a. Risk Factors

Except as set forth below, there have been no
material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the
SEC on April 15, 2025. Any of these factors could result in a significant or material adverse effect on our results of operations or financial
condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results
of operations.

The issuance of shares of our Common Stock
upon conversion or exercise of our outstanding Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D
Preferred Stock, Common Warrants and other securities that we may issue in future financing transactions may result in substantial dilution
to our stockholders.

As of May 14, 2025, the Company
currently has outstanding (i) 1,429 shares of Series A Preferred Stock with a conversion value of approximately $1.4 million, convertible
into shares of Common Stock at a conversion rate of the stated value thereof divided by a current effective conversion price of $1.96;
(ii) 175 shares of Series B Preferred Stock with a conversion value of approximately $0.2 million, convertible into shares of Common Stock
at a conversion rate of the stated value thereof divided by a floating conversion price of 80% of the lowest volume weighted average price
during the five trading days immediately prior to conversion; (iii) 2,017 shares of Series C Preferred Stock th a stated value of approximately
$2.0 million, convertible into shares of Common Stock at a conversion rate of the stated value thereof divided by a conversion price of
$1.96 (iv) Series A Warrants to purchase 6,127 shares of Common Stock at an exercise price of $139.00 per share