Company: CERO
Filing Date: 2025-05-27
Form Type: POS AM
Source: 0001213900-25-047469
Chunk: 336

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-27
Form: POS AM
Chunk 336
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 their Series C Common
Warrants for consideration equal to the Black-Scholes value thereof, which shall be settled, at the option of the Company, in either (i)
the form of rights convertible into the consideration receivable by holders of the underlying shares of common stock, based upon the value
of the shares of the successor entity over a specified period or (ii) cash in an amount equal to the Black-Scholes value.

On February 5, 2025, in connection with the sale of pre-funded warrants
and common stock (See Note 8), the exercise price of the Series C Common Warrants was lowered to $ per warrant share. Upon the trigger
of the down-round provision of the Series C Common Warrants, on February 5, 2025, the Company recorded a deemed dividend of $ which
represents the fair value transferred to the warrant holders from the down-round feature being triggered. The Company calculated the difference
between the Series C Common Warrant’s fair value on February 5, 2025, the date the down-round feature was triggered, using the current
exercise price at the time of $ and the new exercise price of $. The deemed dividend increased net loss attributable to common
shareholders by $ in the condensed consolidated statement of operations for the three months ended March 31, 2025.

|                                 |     | February 5, 2025 |
|:--------------------------------|:----|-----------------:|
| Exercise price                  |     |   $0.04 to $9.80 |
| Term (years)                    |     |              3.0 |
| Expected stock price volatility |     |          109.17% |
| Risk-free rate of interest      |     |            4.19% |

The Company’s Series
C Common Warrants are exercisable into Common Stock and are recorded as equity.

F-24 December 2024 and January 2025 Common Warrants (Successor) On December 23, 2024, the Company issued warrants to purchase an aggregate of 84,061shares of Common Stock to certain investors affiliated with each other to induce investors to exercise their Series A Preferred Warrants for cash (the “December 2024 Common Warrants”). The December 2024 Common Warrants are exercisable for cash at an initial exercise price equal to $ 5.61(as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). The December 2024 Common W