Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 321

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 321
---
 Common
Warrants are exercisable into Common Stock, which has no cash redemption features that require liability treatment. The Company has recorded
the September 2024 PIPE Common Warrants as equity.

Preferred Warrants

The Preferred Warrants will initially be exercisable
for cash at an exercise price equal to $. The exercise price is subject to adjustment for stock splits, combinations and similar events,
and, in the event of stock dividends and splits, the number of shares of Series A Preferred Stock issuable upon the exercise of the Preferred
Warrant will also be adjusted so that the aggregate exercise price shall be the same immediately before and immediately after any such
adjustment.

The Preferred Warrants will expire on the first
anniversary of the closing of the Merger, or February 14, 2025.

We have the right, conditional upon the share
price of CERO stock to be trading above $ per share, to require the holders of Preferred Warrants to exercise such Preferred Warrants
into up to an aggregate number of shares of Preferred Stock equal to the holder’s pro rata amount of shares of Preferred
Stock. In connection with the Series C PIPE Financing, we agreed with certain holders of the Preferred Warrants not to exercise such
right to require such exercise by the holders thereof in consideration for their investment in the Series C PIPE Financing.

The Preferred Warrants prohibit us from entering
into specified fundamental transactions unless the Successor assumes all of our obligations under the Preferred Warrants under a written
agreement before the transaction is completed. Upon specified corporate events, a holder of the Preferred Warrants will thereafter have
the right to receive upon an exercise such shares, securities, cash, assets or any other property whatsoever which the holder would have
been entitled to receive upon the happening of the applicable corporate event had the Preferred Warrant been exercised immediately prior
to the applicable corporate event.

In the three-month period ended September 30,
2024, Series A Preferred Warrants were converted into shares of Series A Preferred Stock for proceeds of $.

The Company’s Preferred Warrants are exercisable
into Series A Preferred Stock, which has no cash redemption features that require liability treatment. The Company has recorded the Preferred
Warrants as equity.

|                                                 |     | Balance       
 September 30, 
 2024          |        |
|:------------------------------------------------|:----|:--------------|-------:|
| Common Warrants                                 |     |               |        |
| Preferred Warrants (Predecessor)                |     |               |