Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 52

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 52
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 effective by the Securities and
Exchange Commission on July 5, 2024.

Notwithstanding
the foregoing, Public and Private Placement Warrant holders may, during any period when the Company shall have failed to maintain an
effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the
Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will not
be able to exercise their warrants on a cashless basis. The Public and Private Placement Warrants will expire five years after the Merger
or earlier upon redemption or liquidation.

Once
the warrants 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