Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 199

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 199
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 became
exercisable, the Company may, with 30 days prior notice, redeem the Public Warrants in whole and not in part, at a price of $0.20 per
warrant if the shares underlying the warrants are registered and if the closing price of Common Stock equals or exceeds $36,000.00 for
20 of the prior 30 trading days. If the Company calls the Public Warrants for redemption, management will have the option to require all
holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

The exercise price and number
of shares of Common Stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a
stock dividend, extraordinary dividend or recapitalization, reorganization, merger, or consolidation. However, the warrants will not be
adjusted for issuances of Common Stock at a price below their respective exercise prices. Additionally, in no event will the Company be
required to net cash settle the warrants.

As discussed above, 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. Management has concluded that the
Public Warrants issued pursuant to the warrant agreement qualify for equity accounting treatment.

Series A Common Warrants (Successor) - February 2024

The Company’s 306 Series
A Common Warrants were initially exercisable for cash at an exercise price equal to the greater of (x) $18,400 (as adjusted for stock
splits, stock dividends, stock combinations, recapitalizations and similar events) and (y) the closing price of the Common Stock on the
trading day immediately prior to the Subscription Date (as defined in the Series A Common Warrant Agreement). 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 Common Stock issuable upon the exercise of the February 2024 PIPE Common Warrants will also be adjusted so that the aggregate exercise
price shall be the same immediately before and immediately after any such adjustment. On stockholder approval for the issuance of shares
underlying the warrants, granted April 30, 2024, the exercise price of the Series A Common Warrants was adjusted to $2,780 per share,
per the