Company: CERO
Filing Date: 2025-07-21
Form Type: S-1
Source: 0001213900-25-066152
Chunk: 382

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-07-21
Form: S-1
Chunk 382
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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 $ per share,
per the terms of the Securities Purchase Agreement. On April 30, 2024, the Company calculated the total fair value of the consideration
for the modification of the Series A Common Warrants, which includes the incremental fair value of the Series A Common Warrants (determined
by comparing the fair values immediately prior to and immediately after the modification). The incremental fair value was calculated using
the Black-Scholes option-pricing model and amounted to $, the effect of which was an increase in the net loss attributable to common
shareholders in the statement of operations for the year ended December 31, 2024.

| Risk-free interest rate  |     | 4.72 | % |
| Expected life (in years) |     | 4.80 |   |
| Expected dividend yield  |     |    0 | % |
| Expected volatility      |     |   90 | % |

F-52 The Series A Common Warrants will be exercisable beginning six months after the issuance date (the “Initial Exercisability Date”) and expiring on the third anniversary of the Initial Exercisability Date. The Series A Common Warrants require “buy-in” payments to be made by us for failure to deliver any shares of Common Stock issuable upon exercise. If at the time of exercise of the Series A Common Warrants, there is no effective registration statement registering the shares of the Common Stock underlying the Series A Common Warrants, such warrants may be exercised on a cashless basis pursuant to their terms. If we issue options, convertible securities, warrants, shares, or similar securities to holders of Common Stock, each holder of February 2024 PIPE Common Warrants has the right to acquire the same as if the holder had exercised its Series A Common