Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 237

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 237
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,000 shares of Common Stock (ii) 2,551,020 new common warrants to
                                            purchase up to an aggregate of 2,551,020 shares of our Common Stock and an aggregate of 2,551,020
                                            shares of our Common Stock issuable upon exercise of the common warrants and (ii) Pre-Funded
                                            Warrants to purchase up to 2,251,020 shares of Common Stock, in lieu of shares of Common
                                            Stock.

In addition to any resales
pursuant to such registration statements, subject to applicable transfer restrictions and the conditions to the availability of Rule 144
for former shell companies under Rule 144(i), shares of Common Stock held by these stockholders will be eligible for resale, potentially
subject to, in the case of stockholders who are our affiliates, volume, manner of sale, and other limitations under Rule 144 promulgated
under the Securities Act.

In addition, shares of our
Common Stock issuable upon exercise or vesting of incentive awards under our incentive plans are, once issued, eligible for sale in the
public market, subject to any lock-up agreements and, in some cases, limitations on volume and manner of sale applicable to affiliates
under Rule 144. Furthermore, shares of our Common Stock reserved for future issuance under our incentive plan may become available for
sale in future.

84

The market price of shares
of our Common Stock could drop significantly if the holders of the shares of Common Stock described above sell them or are perceived by
the market as intending to sell them. These factors could also make it more difficult for us to raise additional funds through future
offerings of shares of our Common Stock or other securities.

Most of our outstanding Common Warrants are
“out-of-the-money.” If the trading price of our Common Stock does not increase, the holders thereof will be unlikely to exercise
such Common Warrants and we will not receive the proceeds of such exercises.

Holders of our Warrants
will be less likely to exercise their Warrants if the exercise prices of their Warrants exceed the market price of our Common Stock.
There is no guarantee that our Warrants will continue to be in the money prior to their expiration, and as such, the Warrants may
expire worthless. As such, any cash proceeds that we may receive in relation to the exercise of the Warrants overlying shares of
Common Stock being offered for sale in this Annual Report will be dependent on the trading price of our Common