Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 34

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 34
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 Preferred Warrants that
was unpaid. In December 2024, the Investor exercised its Series A Preferred Warrants to purchase shares of Series A Preferred stock of
the Company for which such investor remitted a partial exercise price amount of $100,000 instead of the exercise price of $700,000.

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During the six months ended
June 30, 2025, 1,090 shares of Series A Preferred Stock were converted into 14,447 shares of Common Stock. The conversion ratio was based
on the Series A Certificate of Designations and reflected the application of the Alternate Conversion Price described above, applicable
as of each date of conversion plus a 25% premium for penalties due. As a result of the 25% premium, during the six months ended June 30,
2025, the Company recorded the following: 1) for 473 shares of Series A Preferred Stock converted during the continuance of a Trigger
Event as described above, the Company recorded a deemed dividend of $118,250, which represents the fair value of excess common shares
convertible and issuable to the preferred shareholders upon occurrence of the trigger event based on an average per share common share
price of $95.00, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated
statement of operations for the six months ended June 30, 2025, and 2) for 625 shares of Series A Preferred Stock converted after the
expiration of a Trigger Event as described above, the Company recorded a stock-based inducement expense of $156,250, which represents
the fair value of excess common shares transferred to the preferred shareholders based on an average per share common share price of $95.00
and is reflected as part of other income (expense), net, on the accompanying condensed consolidated statement of operations for the six
months ended June 30, 2025. Additionally, during the three and six months ended June 30, 2025, Series C Preferred Stock was converted
by investors at a conversion price lower than the conversion price of the Series A Preferred Stock then in effect. The lower conversion
price lowered the Series A Preferred Stock conversion price from $39.20 per share to $1.76 per share. In connection with this down round
triggering event, during the three and six months ended June 30, 2025, the Company recorded a deemed dividend of $14,871,