Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 39

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 39
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See Note 9 below), pursuant to the Amended and Restated Securities Purchase
Agreement, dated February 14, 2024, by and among the Company, PBAX and certain accredited investors for aggregate cash proceeds to the
Company of approximately $10.0 million, including cash previously received for convertible bridge note proceeds.

A portion of such Series
A Preferred Stock was issued as consideration for the cancellation of outstanding indebtedness, including a promissory note of PBAX amounting
to $1,555,000 and the Predecessor’s convertible bridge notes amounting to $627,154.

The Company accounts for preferred
stock as either equity or debt-like securities based on an assessment of the Preferred Stock rights and preferences and applicable authoritative
guidance in ASC 480 and ASC 815, Derivatives and Hedging. The Company has concluded that Series A, Series B Preferred Stock, Series C
Preferred Stock, and Series D Preferred Stock, which have no cash redemption features outside of the Company’s control, and are
treated as equity. The Company has also concluded that the Series A Common Warrants and Series C Common Warrants do not possess redemption
features outside of the Company’s control and are treated as equity.

Due to delayed filing and
declaration of effectiveness relative to the deadlines defined in the Registration Rights Agreement, as of September 30, 2024, the Company
accrued a registration rights penalty amounting to $645,693, which was payable in cash to the holders of Series A Preferred Stock.
On March 27, 2025, the Company entered into a Waiver of Registration Rights Penalties whereby the Investor agreed to waive all Series
A registration rights penalty amounting to $645,693 in exchange for the Company’s forgiveness of a $600,000 shortfall in the exercise
price of the Series A Preferred Warrants that was unpaid. In December 2024, the Investor exercised its Series A Preferred Warrants to
purchase shares of Series A Preferred stock of the Company for which such investor remitted a partial exercise price amount of $100,000
instead of the exercise price of $700,000.

During the three months ended
September 30, 2024, 7,005 shares of Series A Preferred Stock were converted into 54,474 shares of Common Stock.

During the nine months ended
September 30, 2025, 1,090 shares of Series A Preferred Stock were converted into 14,447 shares of Common Stock