Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 50

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 50
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 September 15, 2025, the
30th day following the effective date of the registration statement to be filed pursuant to the Registration Rights Agreement, the
conversion price of Series D Preferred Stock was lowered to from $15.60 to $5.36, the Series D Adjustment Price. In connection with
this down round triggering event, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of
$6,649,828, which represents the fair value of excess common stock convertible and issuable to the preferred shareholders upon the occurrence
of the initial trigger event based on a per common share price of $5.43, the effect of which was an increase in the net loss attributable
to common shareholders in the accompanying condensed consolidated statement of operations for the three and nine months ended September
30, 2025.

During the three months ended September 30, 2025,
200 shares of Series D Preferred Stock were converted into 37,314 shares of Common Stock. The conversion ratios were at the Series D Adjustment
Price.

As of September 30, 2025,
there were 9,800 remaining shares of Series D Preferred Stock, which were convertible into approximately 1,828,358 shares of Common Stock.

Purchase of Common Stock by Keystone Capital Partners under the
Equity Line of Credit (“ELOC”)

On February 14, 2024, in
conjunction with, and as a condition to the closing of the Series A PIPE Financing, the Company entered into a common stock purchase agreement
with Keystone Capital Partners, L.P. (“Keystone”), pursuant to which we may sell and issue, and Keystone is obligated to purchase,
up to 12,500 shares subject to the Company obtaining all necessary stockholder approvals to issue the shares to Keystone. The price of
the shares purchased by Keystone under the ELOC is 90% of various volume-weighted average price (“VWAP”) and closing price-based
formulae, and requires a waiver, should the selling price be below $2,000.00 per share. As consideration for Keystone’s commitment
to purchase shares of Common Stock pursuant to the Old Keystone Purchase Agreement, we issued an aggregate of 932 shares of Common Stock
to Keystone.

During the nine months ended September 30, 2024, the Company sold 10,244
shares for net proceeds of approximately $3.6 million under the Keystone ELOC. The Company sought and received