Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 61

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 61
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306    2,780.00    2.12   September 2024 Series C Common Warrants   4,088    0.80    2.71   December 2024 Common Warrants   4,203    112.20    2.98   January 2025 Common Warrants   8,193    116.40    3.02   February 2025 Pre-funded Warrants   10,787    0.002    No expiration date   February 2025 Common Warrants   127,551    39.20    4.61   Outstanding as of June 30, 2025   159,724   $707.39    4.40  

26

NOTE 10
– FAIR VALUE MEASUREMENTS

Investment
in equity securities

 On
April 22, 2025, pursuant to the Fourth Securities Purchase Agreement, the Company issued and sold, and the investors purchased, in a
private placement (the “Fourth PIPE Financing”), 6,250 shares of its Series D Preferred Stock to investors in exchange for
the receipt of 1,000,279 shares of the Stella Series D Preferred Stock, in which a portion of the Stella Series D Preferred Stock was
owned by a related party investor (see Note 13). The exchange of shares was in lieu of cash, the cost of which is included in investment
in equity securities on the accompanying unaudited condensed balance sheet as of June 30, 2025. The fair value of Stella’s Series
D Preferred Stock received was determined to be $500,000 as of the transaction date, based on the subsequent sale of the 1,000,279 Stella
Series D Preferred Stock $500,000 in cash, pursuant to a Stock Purchase Agreement dated August 20, 2025 (see Note 14). Accordingly, the
Company recognized the issuance of its Series D Preferred Stock to investors at a cost of $500,000, which represents the fair value of
the consideration received. The difference between the stated value of the Company’s Series D Preferred Stock ($5.0 million) and
the fair value of the consideration received ($500,000) was recorded as a decrease to additional paid-in capital, which amounted to $4.5