Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 351

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 351
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 the Series B Preferred Stock have no voting rights. The Series B Preferred Stock ranks pari passu with the Series A Preferred Stock. Due to delayed filing and declaration of effectiveness relative to the deadlines defined in the Registration Rights Agreement, through December 31, 2024, the Company accrued a registration rights penalty amounting to $ 55,000, which is payable in cash to the holders of Series B Preferred Stock and included in accrued liabilities on the accompanying condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024. During the three months ended September 30, 2024, 140shares of Series B Preferred Stock were converted into 622shares of Common Stock. During the three months ended March 31, 2025, 75shares of Series B Preferred Stock were converted into 2,500shares of Common Stock. The conversion ratio was based on the Series B Certificate of Designations and included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days. During the three months ended June 30, 2025, 198shares of Series B Preferred Stock were converted into 42,258shares of Common Stock. The conversion ratio of 23 Series B Preferred Stock was based on the Series B Certificate of Designations and included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days. As a result of the 25% premium, the Company recorded a deemed dividend of $ 0and $ 30,250, which represents the fair value of excess common stock transferred to the preferred shareholders based on an average per share common share price of $ 37.50, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying condensed consolidated statement of operations for the three and nine months ended September 30, 2025, respectively. Additionally, during the nine months ended September 30, 2025, the Company converted 175shares of Series B Preferred stock at a conversion price lower than the contractual conversion price of the Series B Preferred Stock. These shares were converted after the expiration of a prior Trigger Event. The lower conversion price lowered the Series B Preferred Stock conversion price from the contractual conversion price to $ 1.76per share. In connection with this down round triggering event, during the nine months ended September 30, 2025, the Company recorded a