Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 188

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 4
Chunk 188
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 tariffs on U.S. goods. Political tensions as a result of trade policies could reduce trade volume, investment,
technological exchange and other economic activities between major international economies, resulting in a material adverse effect
on global economic conditions and the stability of global financial markets. Any further trade restrictions, retaliatory trade
measures and additional tariffs could result in higher input costs to our investigational candidates. We may not be able to fully
mitigate the impact of these increased costs, which could adversely impact our business. While tariffs and other trade measures
imposed by other countries on U.S. goods have not yet had a significant impact on our business or results of operations, we cannot
predict further developments, and such existing or future tariffs could have a material adverse effect on our results of operations,
financial position and cash flows.

41

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

On January 6, 2025, 625 Series A Preferred Warrants were exercised
into 625 shares of Series A Preferred Stock for gross cash proceeds of $500,000.

On January 6, 2025, the Company issued warrants
to purchase an aggregate of 163,853 shares of Common Stock to a certain investor affiliated with each other to induce investors to exercise
their Series A Preferred Warrants for cash (the “January 2025 Common Warrants”). The January 2025 Common Warrants are initially
exercisable for cash at an initial exercise price equal to $5.82 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations
and similar events). The January 2025 Common Warrants are exercisable beginning six months after the issuance date (the “Initial
Exercisability Date”) and expire on the third anniversary of the Initial Exercisability Date. The January 2025 Common Warrants require
“buy-in” payments to be made by us for failure to deliver any shares of Common Stock issuable upon exercise. If at the time
of exercise of the January 2025 Common Warrants, there is no effective registration statement registering the shares of the Common Stock
underlying the January 2025 Common Warrants, such warrants may be exercised on a cashless basis pursuant to their terms.

On March 10, 2025, the Company redeemed 316 shares of Series C Preferred
Stock from certain investors for a cash payment of $395,000, or $1,250 per share of Series C Preferred Stock