Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 181

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 181
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 net cash settle the warrants.

As
discussed above, the Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment
of the instruments’ specific terms and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging. Management
has concluded that the Public Warrants issued pursuant to the warrant agreement qualify for equity accounting treatment.

Series
A Common Warrants (Successor) - February 2024

The
Company’s 306 Series A Common Warrants were initially exercisable for cash at an exercise price equal to the greater of (x) $18,400
(as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (y) the closing price of
the Common Stock on the trading day immediately prior to the Subscription Date (as defined in the Series A Common Warrant Agreement).
The exercise price is subject to adjustment for stock splits, combinations and similar events, and, in the event of stock dividends and
splits, the number of shares of Common Stock issuable upon the exercise of the February 2024 PIPE Common Warrants will also be adjusted
so that the aggregate exercise price shall be the same immediately before and immediately after any such adjustment. On stockholder approval
for the issuance of shares underlying the warrants, granted April 30, 2024, the exercise price of the Series A Common Warrants was adjusted
to $2,780 per share, per the terms of the Securities Purchase Agreement.

The
Series A Common Warrants became exercisable beginning six months after the issuance date (the “Initial Exercisability Date”)
and expiring on the third anniversary of the Initial Exercisability Date. The Series A Common Warrants require “buy-in” payments
to be made by us for failure to deliver any shares of Common Stock issuable upon exercise.

If
at the time of exercise of the Series A Common Warrants, there is no effective registration statement registering the shares of the Common
Stock underlying the Series A Common Warrants, such warrants may be exercised on a cashless basis pursuant to their terms.

If
we issue options, convertible securities, warrants, shares, or similar securities to holders of Common Stock, each holder of February
2024 PIPE Common Warrants has the right to acquire the same as if the holder had exercised its Series A Common Warrants. The holders
of Series A Common Warrants are entitled to receive any dividends paid or distributions made to our