Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 179

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 179
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 services
provided by Jones, the Placement Agent and Jones agreed that the Placement Agent will receive an aggregate fee equal to 6% of the gross
proceeds received in the Offering and Jones will receive an aggregate fee equal to 3% of the gross proceeds received in the Offering.
In addition, the Company agreed to reimburse the Placement Agent for its legal fees and expenses and other out-of-pocket expenses in
an amount up to $85,000, non-accountable expenses of up to $25,000 and has agreed to reimburse Jones for all reasonable and documented
out-of-pocket fees and expenses, including but not limited to travel and other out-of-pocket expenses in an amount not to exceed $15,000.

The
Company’s directors and executive officers agreed not to offer, issue, sell, contract to sell, encumber, grant any option for the
sale of or otherwise dispose of any shares of common stock or other securities convertible into or exercisable or exchangeable for common
stock for a period of 90 days following the closing date of the Offering, which terms may be waived in the sole discretion of and without
notice by the Placement Agent, subject to certain exceptions. In addition, the Company has agreed to not enter into variable rate financings
for a period of 180 days following the closing date, subject to certain exceptions, or enter into any equity financings for a period
of 60 days following the closing date, subject to certain exceptions.

In connection with the Offering, the Conversion Price of the Series
A Preferred Stock and Series C Preferred Stock reset to $39.20 per share of Common Stock.

22

NOTE 9
– WARRANTS

Accounting
for warrants

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. The assessment considers whether
the instruments are free standing financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480,
and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are
indexed to the Company’s own common stock and whether the instrument holders could potentially require “net cash settlement”
in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires
the use of professional judgment, was conducted at the time of warrant issuance and as of each subsequent period end