Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 381

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 381
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 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 shares of Predecessor Series A Preferred Stock at a price of $ 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 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 shares of Series A Preferred Stock was issued in a transaction
that included the conversion of shares of Series 1 Preferred Stock into shares of Predecessor Series A Preferred Stock.
Another warrant to purchase up to shares of Series A Preferred Stock was issued concurrent with the purchase of shares
of Series A Preferred Stock. These warrants are collectively referred to as the “Predecessor Preferred Stock Warrants.” On
February 14, 2024, the Predecessor Preferred Stock Warrants were converted into warrants to purchase up to shares of Common Stock
(“Conversion Warrants”).

The Conversion Warrants were exercisable for Common Stock at an exercise
price equal to $. The exercise price was 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 Conversion Warrant will also be
adjusted so that the aggregate exercise price shall be the same immediately before and immediately after any such adjustment.

The Conversion Warrants expired
after the original Predecessor Preferred Stock Warrants