Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 57

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 57
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arrants, 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 December
2024 Common Warrants and January 2025 Common Warrants have the right to acquire the same as if the holder had exercised its December
2024 Common Warrants or January 2025 Common Warrants. The holders of December 2024 Common Warrants and January 2025 Common Warrants are
entitled to receive any dividends paid or distributions made to our holders of Common Stock on an “as if converted” basis.

The
December 2024 Common Warrants and January 2025 Common Warrants prohibit us from entering into specified fundamental transactions unless
the successor entity assumes all of our obligations under the December 2024 Common Warrants and January 2025 Common Warrants agreements
before the transaction is completed. Upon specified corporate events, a holder of December 2024 Common Warrants and January 2025 Common
Warrants will thereafter have the right to receive upon an exercise such shares, securities, cash, assets or any other property whatsoever
which the holder would have been entitled to receive upon the happening of the applicable corporate event had the December 2024 Common
Warrants and January 2025 Common Warrants been exercised immediately prior to the applicable corporate event. Upon the consummation of
any Fundamental Transaction, the Company shall exchange the December 2024 Common Warrants and January 2025 Common Warrants for consideration
equal to the Black Scholes Value of such portion of the December 2024 Common Warrants and January 2025 Common Warrants subject to exchange
(collectively, the “Aggregate Black Scholes Value”) in the form of, at the Company’s election (such election to pay
in cash or by delivery of the Rights (as defined below), a “Consideration Election”), either (I) rights (with a beneficial
ownership limitation, mutatis mutandis) (the “Rights”), convertible in whole, or in part, at any time, without the
requirement to pay any additional consideration, at the option of the Holder, into such Corporate Event Consideration applicable to such
Fundamental Transaction equal in value to the Aggregate Black Scholes Value issuable upon conversion of the Rights to be determined in
increments of 10% (or such greater percentage as the Holder may notify the Company from time to time) of the portion