Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 246

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 1A
Chunk 246
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 which applied during the period when substantially all of the conversions since the Business Combination occurred
as a result of a failure to file and cause the SEC to declare a registration statement with respect to the resale of the underlying shares
in a timely manner, have resulted and may in the future result in the issuance of shares of Common Stock at an effective conversion price
below the trading price of our Common Stock at the time of such conversion.

40

We cannot assure you that we will remain in compliance
with all of the terms of the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock or Series D Preferred Stock
and that such penalties and adjustments will not apply in the future. In addition, we cannot assure you that we will not issue additional
convertible or other derivative securities with highly dilutive penalty or adjustment provisions. As described elsewhere in this Quarterly
Report, the Company needs to obtain financing to fund its research and development activities and clinical trials, as well as other operations.
Under challenging conditions in the equity capital markets, particularly for pre-commercialization biotech companies, we may have no viable
alternatives to agreeing to inclusion of such provisions in the terms of future financings.

Unstable market and
economic conditions may have serious adverse consequences on our business, financial condition and stock price.

The global economy, including
credit and financial markets, has experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability,
declines in consumer confidence, declines in economic growth, increases in unemployment rates, increases in inflation rates, higher interest
rates and uncertainty about economic stability. For example, the Russia-Ukraine war and the Israel-Hamas war created volatility in the
global capital markets and may have further global economic consequences, including disruptions of the global supply chain and energy
markets. The imposition of tariffs by the United States on imports from Canada, China and Mexico and retaliatory tariffs or other actions
by the governments of such countries have also created economic uncertainty and disruptions in the capital markets. There have also been
disruptions to the U.S. banking system due to bank failures in the past several years, including with respect to Silicon Valley Bank,
Signature Bank and First Republic Bank. Any such volatility and disruptions may have adverse consequences on us or the third parties on
whom we rely. If the equity and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary
debt or equity financing more difficult to obtain in a timely manner or on favorable terms, more costly or more