Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 256

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 256
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 to $5.82, (iv)
February 2025 Common Warrants to purchase an aggregate of 2,551,020 shares of Common Stock at an exercise price of $1.96, (v)
Pre-Funded Warrants to purchase an aggregate of 215,740 shares of Common Stock at an exercise price of $0.0001, and (vi) Public
Warrants and Private Placement Warrants to purchase an aggregate of 91,925 shares of Common Stock at an exercise price of $1,150.00
per share. To the extent such warrants are exercised, additional shares of our Common Stock will be issued, which will result in
dilution to the holders of our Common Stock and increase the number of shares eligible for resale in the public market. Sales of
substantial numbers of such shares in the public market could adversely affect the market price of our Common Stock, the impact of
which increases as the value of our stock price increases.

Our Earnout Shares are accounted for as
liabilities and the changes in value of such shares could have a material effect on, or cause volatility in, our financial results. 

We evaluated the accounting treatment of our Earnout Shares subject
to forfeiture if the applicable conditions to transferability thereof are not satisfied and determined to classify such shares as liabilities
measured at fair value. The fair value of such shares is remeasured on a quarterly basis over the earn-out period with changes in the
estimated fair value recorded in Other income (expense) on the consolidated statement of operations. Due to the recurring fair value measurement,
we expect that we will recognize non-cash gains or losses on our Earnout Shares each reporting period and that the amount of such gains
or losses could materially impact or cause volatility in our financial results.

96

Item 1B. Unresolved Staff Comments.

None.

Item 1C. Cybersecurity.

Cybersecurity Risk Management
and Strategy

We have implemented risk
management procedures, which include cybersecurity risk management, that are designed to define our corporate risk tolerance and align
assumed risks to that tolerance through risk identification, prioritization, assessment, mitigation and planned responses if risk is realized.
These elements are applied to cybersecurity as well as other origins of risk.

Our cybersecurity risk management
procedures are designed to address four key areas:

●Identification
of assets at risk from cybersecurity threats

●Identification
of potential sources of cybersecurity threats

●Assessment
of the status of protections in place to prevent or mitigate