Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 193

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 193
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 same or similar securities and for impairment, if any. There was no impairment identified on the
investment in equity securities during the period ended September 30, 2025. This non-cash transaction did not impact the Company’s
cash flows and is disclosed as a non-cash investing and financing activity in the condensed consolidated statement of cash flows in accordance
with ASC 230, Statement of Cash Flows.

On June 5, 2025, the Company
sold an additional 938 shares of Series D Preferred Stock for gross cash proceeds of $750,400 in an additional closing of the Fourth PIPE
Financing.

On June 25, 2025, we entered
into an amendment (the “Amendment”) to the Fourth Securities Purchase Agreement pursuant to which the Company added certain
new institutional investors to the schedule of buyers in the Fourth Securities Purchase Agreement, to issue and sell to such investors,
in one or more closings shares of the Company’s Series D Preferred Stock. Also, on June 25, 2025, we sold an additional 2,315 shares
of Series D Preferred Stock for gross cash proceeds of $1,852,000 in an additional closing of the Fourth PIPE Financing.

On July 18, 2025, the Company
sold an additional 497 shares of Series D Preferred Stock for gross cash proceeds of $432,600 in an additional closing, and the Company
received net proceeds of $320,801.

On September 15, 2025, the
30th day following the effective date of the registration statement to be filed pursuant to the Registration Rights Agreement, the
conversion price of Series D Preferred Stock was lowered to from $15.60 to $5.36, the Series D Adjustment Price. In connection with
this down round triggering event, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of
$6,649,828, which represents the fair value of excess common stock convertible and issuable to the preferred shareholders upon the occurrence
of the initial trigger event based on a per common share price of $5.43, the effect of which was an increase in the net loss attributable
to common shareholders in the accompanying condensed consolidated statement of operations for the three and nine months ended September
30, 2025.

During the three months ended September 30, 2025,
200 shares of Series D Preferred Stock were converted into 37,314 shares of Common Stock.