Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 180

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 180
---
 a Waiver of Registration Rights Penalties whereby the Investor agreed to waive all Series
A registration rights penalty amounting to $645,693 in exchange for the Company’s forgiveness of a $600,000 shortfall in the exercise
price of the Series A 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.

During the three months ended
September 30, 2024, 7,005 shares of Series A Preferred Stock were converted into 54,474 shares of Common Stock.

During the nine months ended
September 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 nine months ended September
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 stock 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 condensed consolidated statement
of operations for the nine months ended September 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 stock 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 nine months ended September
30, 2025. Additionally, during the three and nine months ended September 30, 2025, Series C Preferred Stock was converted by investors
at a conversion price lower than the conversion