Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2698

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2698
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. As a result of the 25% premium, the Company recorded a deemed dividend of $88,250 which represents the fair value
of excess common shares transferred to the preferred shareholders based on an average per share common share price of $7.30, the effect
of which was an increase in the net loss attributable to common shareholders in the statement of operations for the year ended December
31, 2024. As of December 31, 2024, there were 273 remaining shares of Series B Preferred Stock, which were convertible into 111,084 shares
of Common Stock.

Successor Series C Convertible Preferred Stock

The Company designated 2,853
shares of its authorized preferred stock as the Series C Preferred Stock and the rights, preferences and privileges of the Series C Preferred
Stock are summarized below.

Each share of Series C Preferred
Stock has a stated value of $1,000 per share and, when issued, the Series C Preferred Stock was fully paid and non-assessable. The Series
C Preferred Stock, ranks senior to all other Company capital stock unless required holder votes are obtained to create a class of stock
senior to Series C Preferred Stock.

Ranking: The Series C Preferred Stock are
senior in rank with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding
up of the Company to the Series A Convertible Preferred Stock, the Series B Convertible Preferred Stock, and Common Stock. The Company
shall not, without the consent of the Required Holders, authorize or issue any shares of senior rank with respect to the preferences as
to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company, shares of pari passu rank with
respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company,
or shares of junior ranking stock that have a maturity or redemption date prior to the first anniversary of the Series C Preferred Stock
issuance date.

Dividend and Participation Rights: The
holders of Series C Preferred Stock will be entitled to dividends, on 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 C 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 C Preferred Stock may convert at any time, all