Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 339

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 339
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 the Conversion Price Floor, if the Conversion Price Floor is greater than 80%
of the 5-day volume weighted average price of a share of Common Stock, then the Conversion Amount (as defined in the Certificates of
Designations) for such Series C Preferred Stock is increased by a multiplier resulting in the convertibility of the shares of Series
C Preferred Stock into the number of shares of Common Stock that would have been issuable if the Alternate Conversion Price had been
equal to such lower volume weighted average price.

<div align='center'>F-17</div>

Redemptions: Upon bankruptcy or liquidation,
Series C Preferred Stock will be redeemed at a 25% premium to the conversion amount multiplied by the highest Alternative Conversion
Price within the preceding 20 days multiplied by 125% of the greatest closing sale price of the Common Stock on any day immediately following
public announcement of insolvency and the date the entire redemption payment has been made. Additionally, the Company may voluntarily
redeem the Series C Preferred Stock as at 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.

The holders of the Series C Preferred Stock have
no voting rights.

In September 2024, the Company consummated a
private placement (the “Series C PIPE Financing”) of 2,853 shares of Series C Preferred Stock and warrants to purchase 81,752
shares of Common Stock (the “September 2024 PIPE Common Warrants”) (See Note 8 below), pursuant to the Securities Purchase
Agreement, dated September 25, 2024, by and among the Company and certain accredited investors for aggregate cash proceeds to the Company
of approximately $1.25 million.

The Company accounts for preferred stock as either
equity or debt-like securities based on an assessment of the Preferred Stock rights and preferences and applicable authoritative guidance
in ASC 480 and ASC 815, Derivatives and Hedging. The Company has concluded that the Series C Preferred Stock, which has no cash redemption
features outside of the Company’s control are treated as equity. The Company has also concluded that the Series C Common Warrants
do not possess redemption features outside of the Company’s control and are treated as equity.

Predecessor Preferred Stock Conversion to Common Stock

At December 31, 2023, Predecessor had 75,120,105
shares of capital stock authorized, consisting of 45,350,000