Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 44

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 44
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 the greater of $39.20 (the “Series C Conversion Price Floor”) or 80% of the trailing 5-day daily volume weighted average
price of a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration rights, failure to
deliver shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series C Conversion Price Floor,
if the Series C Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common Stock, then
the Conversion Amount (as defined in the Series C Certificate of Designation) for such Series C Preferred Stock is increased by a multiplier
resulting in the convertibility of the shares of Series C Preferred Stock into the number of shares of Common Stock that would have been
issuable if the Alternate Conversion Price had been equal to such lower volume weighted average price.

Redemptions: Upon
bankruptcy or liquidation, Series C Preferred Stock will be redeemed at a 25% premium to the conversion amount multiplied by the highest
Alternative Conversion Price within the preceding 20 days multiplied by 125% of the greatest closing sale price of the Common Stock on
any day immediately following public announcement of insolvency and the date the entire redemption payment has been made. Additionally,
the Company may voluntarily redeem the Series C Preferred Stock at a 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.

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

In September 2024, the Company
consummated a private placement (the “Series C PIPE Financing”) of 2,853 shares of Series C Preferred Stock and warrants to
purchase 4,088 shares of Common Stock (See Note 9 below), pursuant to the Securities Purchase Agreement, dated September 25, 2024, by
and among the Company and certain accredited investors for aggregate gross cash proceeds to the Company of approximately $1.25 million.

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 the Series C Preferred Stock, which has no cash
redemption features outside of the Company’s control and are treated as equity. The Company has also concluded that the Series C
Common Warrants do not possess redemption features outside