Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 906

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 9C
Chunk 906
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 to the Securities Purchase Agreement, dated
March 28, 2024, by and among us and certain accredited investors (the “Additional Investors” and, together with the Initial
Investors, the “PIPE Investors”), for aggregate cash proceeds to us of approximately $0.5 million. Such private placement
closed on April 1, 2024.

The holders of the Series
B Preferred Stock have no voting rights.

The Series B Preferred Stock ranks pari passu with the Series A Preferred
Stock.

Due to delayed filing and
declaration of effectiveness relative to the deadlines defined in the Registration Rights Agreement, through December 31, 2024, the Company
accrued a registration rights penalty amounting to $55,000, which is payable in cash to the holders of Series B Preferred Stock
and included in accrued liabilities on the accompanying consolidated balance sheet as of December 31, 2024.

During the year ended December 31, 2024, 353 shares of Series B Preferred
Stock were converted into 53,815 shares of Common Stock. The conversion ratio was based on the Series B Certificate of Designations and
included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within
the preceding 20 days. As a result of the 25% premium, the Company recorded a deemed dividend of $88,250 which represents the fair value
of excess common shares transferred to the preferred shareholders based on an average per share common share price of $7.30, the effect
of which was an increase in the net loss attributable to common shareholders in the statement of operations for the year ended December
31, 2024. As of December 31, 2024, there were 273 remaining shares of Series B Preferred Stock, which were convertible into 111,084 shares
of Common Stock.

Successor Series C Convertible Preferred Stock

The Company designated 2,853
shares of its authorized preferred stock as the Series C Preferred Stock and the rights, preferences and privileges of the Series C Preferred
Stock are summarized below.

Each share of Series C Preferred
Stock has a stated value of $1,000 per share and, when issued, the Series C Preferred Stock was fully paid and non-assessable. The Series
C Preferred Stock, ranks senior to all other Company capital stock unless required holder votes are obtained to create a class of stock
senior to Series C Preferred Stock.

Ranking: