Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 32

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 32
---
 an as-if converted basis, equal
to and in the same form as dividends actually paid on shares of Common Stock, when and if actually paid. Series A Preferred Stockholders
will be entitled to participate pro rata in any purchase rights extended to holders of Common Stock on an as-converted basis.

Conversion:
Each holder of Series A Preferred Stock may convert at any time, all, or any part, of the outstanding Series A Preferred Stock into shares
of the Common Stock at the initial “Conversion Price” of $20,000, which is subject to customary adjustments for stock splits.
The Company’s Board of Directors has the right, at any time, with the written consent of the Required Holders (as defined in the
Certificate of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock (the “Series A Certificate
of Designations”)), to lower the fixed conversion price to any amount and for any period of time. If 90 days or 180 days following
the occurrence of the effective date of the registration statement filed pursuant to the First PIPE Registration Rights Agreement, the
Conversion Price then in effect is greater than the greater of $2,000.00 and the Market Price (as defined in the Series A Certificate
of Designations) then in effect (the “Adjustment Price”), the Conversion Price shall automatically lower to the Adjustment
Price. In connection with such adjustment provisions, the Conversion Price was reset to $2,000.00.

Alternate
Conversion: Following the occurrence and during the continuance of a Trigger Event (as defined below), each holder may alternatively
elect to convert the Series A Preferred Stock at the “Alternate Conversion Price” equal to the lesser of the Conversion Price
and the greater of $2,000.00 (the “Series A Conversion Price Floor”) or 80% of the 5-day volume weighted average price of
a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration rights, failure to deliver
shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series A Conversion Price Floor, if the
Series A Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common Stock, then the Conversion
Amount (as defined in the Certificates of Designations) is increased by a multiplier resulting in the convertibility of the shares of
Series A Preferred Stock into the number of shares of Common Stock that would have been issuable if