Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2685

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2685
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 (the “BCA”)
with PBCE Merger Sub, Inc., a wholly-owned subsidiary of PBAX, and PBAX, with the surviving operating entity being named CERo Therapeutics
Holdings, Inc. (“Successor” or the “Company”), and such transaction, the “Business Combination” or
“Merger”.

The Company is focused on
genetically engineering human immune cells to fight cancer. The Predecessor focused on developing the CERo therapeutic platform and had
not yet begun clinical development or product commercialization. The Company’s efforts will focus on continued product development,
including clinical development, to support regulatory approval to commercialize and subsequent product commercialization.

The BCA was amended on February
5, 2024 and again on February 13, 2024. The Merger closed on February 14, 2024 (the “Closing”), at which time the following
occurred:

1.The outstanding shares of Predecessor’s Preferred Stock were converted into 44,155 shares of Common
Stock, par value $0.0001 per share (the “Common Stock”), valued at $21,635,926.

2.The outstanding shares of Predecessor’s common stock were converted into 5,845 shares of Common
Stock, valued at $2,864,074.

    3. Each holder of Predecessor’s common stock received a pro rata portion of up to 12,000 earnout shares of restricted Common Stock (the “BCA Earnout Shares”), valued at $5,880,000, 10,000 of which are subject to vesting upon the achievement of certain stock price-based earnout targets and 2,000 of which are subject to vesting upon a change of control, respectively. 

    4. Certain holders of Predecessor’s common stock received a pro rata portion of 8,750 earnout shares of Common Stock (the “Reallocation Shares”), valued at $4.29 million, which became fully vested upon the Closing. 

5.Certain holders of Predecessor’s common stock and convertible bridge notes received a pro rata portion
of 10,000 earnout shares (the “IND Earnout shares”) of restricted Common Stock, valued at $4,900,000, which vested when the
Company filed an investigational new drug (“IND”) application with the Food and Drug Administration (“FDA”). The
earning of these shares was accompanied by a forfeiture of 10