Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 425

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 425
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 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 were issued, or November 14, 2024.

As discussed above, Predecessor
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. Based on the exercisability of the
Predecessor Preferred Stock Warrants into Series A Preferred Stock, which had a cash redemption feature outside of the control of Predecessor,
the Predecessor Preferred Stock Warrants were recorded as a derivative liability and were revalued at each reporting period, with the
change in value being recorded on the statement of operations.

Series A Common Warrants (Successor) - February 2024

The Company’s Series
A Common Warrants are initially exercisable for cash at an exercise price equal to the greater of (x) $ (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 $ per share,
per the terms of the Securities Purchase Agreement. On April 30, 2024, the Company calculated the total fair value of the consideration
for the modification of the Series A Common Warrants, which includes the