Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 816

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9B
Chunk 816
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30 days prior notice, redeem the Public Warrants in whole and not in part, at a price of $0.01 per
warrant if the shares underlying the warrants are registered and if the closing price of Common Stock equals or exceeds $1,800.00 for 20
of the prior 30 trading days. If the Company calls the Public Warrants for redemption, management will have the option to require all
holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

The exercise price and number
of shares of Common Stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a
stock dividend, extraordinary dividend or recapitalization, reorganization, merger, or consolidation. However, the warrants will not be
adjusted for issuances of Common Stock at a price below their respective exercise prices. Additionally, in no event will the Company be
required to 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.

Conversion Warrants

On November 14, 2019, Predecessor
issued warrants to purchase a total of 1,849,638 shares of Predecessor Series A Preferred Stock at a price of $1.7571 per share. The warrants
were exercisable into shares of Predecessor Series A Preferred Stock at the discretion of the holder, at any time in the five years after
issuance. The warrants were analyzed and determined to be freestanding instruments issued in a transaction including the conversion or
sale of the Series A Preferred Stock. A warrant to purchase up to 426,839 shares of Series A Preferred Stock was issued in a transaction
that included the conversion of 100 shares of Series 1 Preferred Stock into 2,845,597 shares of Predecessor Series A Preferred Stock.
Another warrant to purchase up to 1,422,799 shares of Series A Preferred Stock was issued concurrent with the purchase of 2,845,597 shares
of Series A Preferred Stock. These warrants are collectively referred to as the “Predecessor Preferred Stock Warrants.” On
February 14, 2024, the Pre