Company: CERO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001213900-25-010230
Chunk: 393

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 393
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 be fully vested at closing of the Business
Combination and which are being issued as an offset to the agreement by Sponsor to forfeit an offsetting number of shares, and one pool
of which will contain shares, which will be fully vested upon the achievement of certain regulatory milestone-based earnout
targets and make certain other technical changes to the timing and process for issuance of the shares of Class A common stock
subject to the other earn-out conditions set forth in the Business Combination Agreement.

The Business Combination closed on February 14,
2024, at which time the following occurred:

| 1. | Each outstanding share of the Company’s convertible preferred stock was converted into the number of shares of Class A common stock calculated by dividing the liquidation preference by $10.00. |

| 2. | Each outstanding share of the Company’s common stock was converted into the number of shares of Class A common stock calculated by multiplying each share by the exchange ratio (the “Exchange Ratio”). The Exchange Ratio of 0.064452 was calculated by first subtracting the aggregate liquidation preference of outstanding preferred shares from $50 million, then dividing the result by the number of shares of the Company’s common stock outstanding and dividing by $10.00 per share. |

| 3. | Each holder of the Company’s common stock received a pro rata portion of up to 1.2 million Earnout Shares, 1,000,000 of which are subject to vesting upon the achievement of certain stock price-based earnout targets and 200,000 of which are subject to vesting upon a change of control, respectively. |

| 4. | Certain holders of the Company’s common stock received a pro rata portion of 875,000 Earnout Shares, which became fully vested upon the closing of the Business Combination. |

F-67 CERo Therapeutics, Inc. Notes to Financial Statements

| 5. | Certain holders of the Company’s common stock received a pro rata portion of up to 1.0 million Earnout Shares, which are subject to vesting upon the Company’s filing an investigational new drug application with the FDA. |

| 6. | Each outstanding Company option was converted into an option to purchase a number of shares of Class A common stock, equal to the Company’s common shares underlying the option multiplied by the Exchange Ratio, at an exercise price per share equal to the Company option exercise price divided by the Exchange Ratio. |

| 7. | Each warrant to purchase