Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 370

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 370
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 transaction is completed. Upon specified corporate events, a holder of Series
C Common Warrants will thereafter have the right to receive upon an exercise such shares, securities, cash, assets or any other property
whatsoever which the holder would have been entitled to receive upon the happening of the applicable corporate event had the Series C
Common Warrants been exercised immediately prior to the applicable corporate event. When there is a transaction involving specified changes
of control, a holder of Series C Common Warrants can request the Company to exchange the then unexercised portion of their Series C Common
Warrants for consideration equal to the Black-Scholes value thereof, which shall be settled, at the option of the Company, in either (i)
the form of rights convertible into the consideration receivable by holders of the underlying shares of common stock, based upon the value
of the shares of the successor entity over a specified period or (ii) cash in an amount equal to the Black-Scholes value.

On February 5, 2025, in connection
with the sale of pre-funded warrants and common stock (See Note 8), the exercise price of the Series C Common Warrants was lowered to
$ per warrant share. Upon the trigger of the down-round provision of the Series C Common Warrants, on February 5, 2025, the Company
recorded a deemed dividend of $ which represents the fair value transferred to the warrant holders from the down-round feature being
triggered. The Company calculated the difference between the Series C Common Warrant’s fair value on February 5, 2025, the date
the down-round feature was triggered, using the current exercise price at the time of $ and the new exercise price of $. The
deemed dividend increased net loss attributable to common shareholders by $ in the condensed consolidated statement of operations
for the nine months ended September 30, 2025.

|                                 |     |      February 5, 
             2025 |
|:--------------------------------|:----|-----------------:|
| Exercise price                  |     | $0.80 to $196.00 |
| Term (years)                    |     |              3.0 |
| Expected stock price volatility |     |          109.17% |
| Risk-free rate of interest      |     |            4.19% |

The Company’s Series
C Common Warrants are exercisable into Common Stock and are recorded as equity.

F-25 December 2024 and January 202