Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080011
Chunk: 38

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 38
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 the Company’s Series B Preferred Stock, pursuant to the Securities Purchase Agreement, dated March 28, 2024, by and among us and certain accredited investors, for aggregate cash proceeds to us of approximately $0.5 million. Such private placement closed on April 1, 2024.

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

The Series B Preferred Stock ranks pari passu with the Series A Preferred Stock.

Due to delayed filing and declaration of effectiveness relative to
the deadlines defined in the Registration Rights Agreement, through December 31, 2024, the Company accrued a registration rights penalty
amounting to $55,000, which is payable in cash to the holders of Series B Preferred Stock and included in accrued liabilities on
the accompanying condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

During the three months ended
March 31, 2025, 75 shares of Series B Preferred Stock were converted into 2,500 shares of Common Stock. The conversion ratio was based
on the Series B Certificate of Designations and included the 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. During the three months ended June 30, 2025, 198 shares of Series
B Preferred Stock were converted into 42,258 shares of Common Stock. The conversion ratio of 23 Series B Preferred Stock was based on
the Series B Certificate of Designations and included the 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. As a result of the 25% premium, the Company recorded a deemed dividend
of $5,750 and $24,500, which represents the fair value of excess common shares transferred to the preferred shareholders based on an average
per share common share price of $37.50, the effect of which was an increase in the net loss attributable to common shareholders in the
accompanying consolidated statement of operations for the three and six months ended June 30, 2025, respectively. Additionally, during
the three and six months ended June 30, 2025, the Company converted 175 shares of Series B Preferred stock at a conversion price lower
than the contractual conversion price of the Series B Preferred Stock. These shares were converted after the expiration of a prior Trigger
Event. The lower