Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113118
Chunk: 42

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 42
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871,551, which represents
the fair value of excess common stock convertible and issuable to the preferred shareholders upon occurrence of the trigger event based
on an average per share common share price of $19.18, 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,

Additionally, certain investors
are owed an aggregate of 692 shares of Common Stock of the Company due to shortfall in number of shares issued upon conversion, which
represents the 25% premium not received during the year ended December 31, 2024. Accordingly, during the year ended December 31, 2024,
the Company reduced additional paid-in capital by $85,500 and recorded a liability of $85,500, which is reflected on the accompanying
condensed consolidated balance sheets as deemed dividend - common stock liability as of September 30, 2025 and December 31, 2024.

As of September 30, 2025,
there were 1,429 remaining shares of Series A Preferred Stock, which were convertible into approximately 811,932 shares of Common Stock
based on a conversion price of $1.76 per share.

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Successor Series B Convertible Preferred Stock

The Company designated 626
shares of its authorized preferred stock as Series B Preferred Stock and established the rights, preferences and privileges of the Series
B Preferred Stock pursuant to the Certificate of Designation of Preferences, Rights and Limitations of the Series B Convertible Preferred
Stock (the “Series B Certificate of Designations” and, together with the Series A Certificate of Designations, the “Certificates
of Designations”), as summarized below. Except as set forth below, the Series B Preferred Stock has terms and provisions that are
identical to those of the Series A Preferred Stock.

On April 1, 2024, we consummated
a private placement of 626 shares of the Company’s Series B Preferred Stock, pursuant to the Securities Purchase Agreement, dated
March 28, 2024, by and among us and certain accredited investors, for aggregate cash proceeds to us of approximately $0.5 million. Such
private placement closed on April 1, 2024.

The holders of the Series
B Preferred Stock have no voting rights.

The Series B Preferred Stock
ranks pari passu with the Series A Preferred Stock.