Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 38

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 38
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 Company for net proceeds of $1,227,241 under the New Keystone ELOC. Additionally,
in January 2025, the Company received net proceeds of $716,694 from the collection of stock subscription receivable, which was reflected
as a stock subscription receivable on December 31, 2024. The Company sought and received a waiver to sell the shares below the applicable
minimum price in the agreement.

Issuance of Common Stock to Arena Business Solutions Global SPC
II, Ltd. (“Arena”) for the Arena ELOC

On February 23, 2024, the
Company entered into a common stock purchase agreement (the “Arena Purchase Agreement”) with Arena, pursuant to which we may
sell and issue, and Arena is obligated to purchase, up to $25,000,000 of Common Stock. The price of the shares purchased by Arena under
the ELOC is 90% of various VWAP and closing price-based formulae, and requires a waiver, should the selling price be below $25.00 per
share. As consideration for Arena commitment to purchase shares of Common Stock pursuant to the Arena Purchase Agreement, in May 2024,
the Company issued 3,456 shares of Common Stock to Arena valued at $500,000, which is reflected as deferred offering costs on the accompanying
consolidated balance sheet as of March 31, 2025 and December 31, 2024. The Company has sold no shares of Common Stock to Arena under the
Arena ELOC during the three months ended March 31, 2025 and 2024.

20

Sale of Pre-funded Warrants and Common Stock

On February 5, 2025, the Company
announced the pricing of a reasonable best efforts public offering (the “Offering”), with participation from a member of the
Company’s board of directors and a single institutional investor, for the purchase and sale of (i) 2,551,020 shares of its common
stock, par value $0.0001 per share (the “Common Stock”) or common stock equivalents in lieu thereof (the Company sold 300,000
shares of its common stock and 2,251,020 pre-funded warrants) ; and (ii) common warrants to purchase up to 2,551,020 shares of common
stock (the “Warrants”), at a combined public offering price of $1.96 per share and Warrant. In connection with the Offering,
on February