Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 332

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 332
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 as deferred offering costs on the accompanying consolidated balance sheet as of December 31, 2024. The Company
has sold no shares of Common Stock to Arena under the Arena ELOC during the period ended December 31, 2024.

NOTE 9 – WARRANTS

Accounting for warrants

The Company 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. The assessment considers whether the instruments
are free standing financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments
meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s
own common stock and whether the instrument holders could potentially require “net cash settlement” in a circumstance outside
of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional
judgment, was conducted at the time of warrant issuance and as of each subsequent period end date while the instruments are outstanding.

Public and Private Placement Warrants (Successor)

At December 31, 2024,
there were 91,925 Public and Private Placement Warrants outstanding, each with a right to purchase one share of Common Stock for
$1,150. The Public and Private Placement Warrants became exercisable 30 days after the Merger. No warrants will be exercisable for
cash unless the Company has an effective and current registration statement covering the Common Stock issuable upon exercise of the
warrants and a current prospectus relating to such Common Stock. The Public and Private Placement Warrants were registered under a
resale registration statement on Form S-1 (File No. 333-279156), which was declared effective by the Securities and Exchange
Commission on July 5, 2024.

Notwithstanding the
foregoing, Public and Private Placement Warrant holders may, during any period when the Company shall have failed to maintain an
effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the
Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will
not be able to exercise their warrants on a cashless basis. The Public and Private Placement Warrants will expire five years after
the Merger or