Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 822

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9B
Chunk 822
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 of the Shares on the date the Rights are issued and on each of the nine subsequent Trading Days,
in each case, the aggregate number of additional Shares issuable upon exercise of the Rights shall be determined based upon a Share Value
Increment at 70% of the Closing Bid Price of the Shares in effect for such corresponding Trading Day (such ten (10) Trading Day period
commencing on, and including, the date the Rights are issued, the “Rights Measuring Period”)), or (II) in cash; provided,
that the Company shall not consummate a Fundamental Transaction if the Corporate Event Consideration includes capital stock or other equity
interest (the “Successor Shares”) either in an entity that is not listed on an Eligible Market or an entity in which the daily
share volume for the applicable Successor Shares for each of the twenty Trading Days prior to the date of consummation of such Fundamental
Transaction is less than the aggregate number of Successor Shares issuable to the Holder upon conversion in full of the applicable Rights
(without regard to any limitations on conversion therein, assuming the exercise in full of the Rights on the date of issuance of the Rights
and assuming the Closing Bid Price of the Successor Shares for each Trading Day in the Rights Measuring Period is the Closing Bid Price
on the Trading Day ended immediately prior to the time of consummation of the Fundamental Transaction).

F-25

The Company’s December
2024 Common Warrants are exercisable into Common Stock, which has no cash redemption features that require liability treatment. The Company
has recorded the December 2024 Common Warrants as equity.

On December 23, 2024, in connection with the
issuance of the December 2024 Warrants, the Company calculated the fair value of such warrants using the Black-Scholes option-pricing
model, and the Company determined that the aggregate total fair value of the December 2024 Warrants amounted to approximately $0.3 million,
which were considered offering costs and were netted against the net proceeds received by the warrant exercise under the guidance of ASU
2021-04.

Preferred Warrants

The 2,500 Preferred Warrants
were initially exercisable for cash at an exercise price equal to $800. The exercise price was subject to adjustment for stock splits,
combinations and similar events, and, in the event of stock dividends and splits, the number of shares of Series A Preferred Stock issuable
upon the exercise of the Preferred Warrant