Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 52

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 52
---
 related
party investor (see Note 13). The fair value of Stella’s Series D Preferred Stock received was determined to be $500,000 as of the
transaction date, based on the subsequent sale of the 1,000,279 Stella Series D Preferred Stock for $500,000 in cash, pursuant to a Stock
Purchase Agreement dated August 20, 2025 (see Note 14). Accordingly, the Company recognized the issuance of its Series D Preferred Stock
to investors at a cost of $500,000, which represents the fair value of the consideration received. The difference between the stated value
of the Company’s Series D Preferred Stock ($5.0 million) and the fair value of the consideration received ($500,000) was recorded
as a decrease to additional paid-in capital, which amounted to $4.5 million. The investment in Stella’s Series D Preferred Stock
is classified as an equity security without a readily determinable fair value and is accounted for under the measurement alternative in
accordance with ASC 321, Investments – Equity Securities. Under this method, the investment is initially recorded at
cost, which was determined to be equal to the fair value of the consideration received, and is subsequently adjusted for observable price
changes in orderly transactions for the same or similar securities and for impairment, if any. There was no impairment identified on the
investment in equity securities during the period ended September 30, 2025. This non-cash transaction did not impact the Company’s
cash flows and is disclosed as a non-cash investing and financing activity in the condensed consolidated statement of cash flows in accordance
with ASC 230, Statement of Cash Flows.

On June 5, 2025, the Company
sold an additional 938 shares of Series D Preferred Stock for gross cash proceeds of $750,400 in an additional closing of the Fourth PIPE
Financing.

On June 25, 2025, we entered
into an amendment (the “Amendment”) to the Fourth Securities Purchase Agreement pursuant to which the Company added certain
new institutional investors to the schedule of buyers in the Fourth Securities Purchase Agreement, to issue and sell to such investors,
in one or more closings shares of the Company’s Series D Preferred Stock. Also, on June 25, 2025, we sold an additional 2,315 shares
of Series D Preferred Stock for gross cash proceeds of $1,852,000 in an additional closing of the Fourth PIPE Financing.

On July