Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 180

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 180
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 date while the instruments
are outstanding.

Public
and Private Placement Warrants (Successor)

As
of June 30, 2025 and December 31, 2024, there were 4,596 Public and Private Placement Warrants outstanding, each with a right to purchase
one share of Common Stock for $23,000. The Public and Private Placement Warrants became exercisable 30 days after the Merger. No warrants
will be exercisable for cash unless the Company has an effective and current registration statement covering the Common Stock issuable
upon exercise of the warrants and a current prospectus relating to such Common Stock. The Public and Private Placement Warrants were
registered under a resale registration statement on Form S-1 (File No. 333-279156), which was declared effective by the Securities and
Exchange Commission on July 5, 2024.

Notwithstanding
the foregoing, Public and Private Placement Warrant holders may, during any period when the Company shall have failed to maintain an
effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the
Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will not
be able to exercise their warrants on a cashless basis. The Public and Private Placement Warrants will expire five years after the Merger
or earlier upon redemption or liquidation.

Once
the warrants became exercisable, the Company may, with 30 days prior notice, redeem the Public Warrants in whole and not in part, at
a price of $0.20 per warrant if the shares underlying the warrants are registered and if the closing price of Common Stock equals or
exceeds $36,000.00 for 20 of the prior 30 trading days. If the Company calls the Public Warrants for redemption, management will have
the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described
in the warrant agreement.

The
exercise price and number of shares of Common Stock issuable upon exercise of the warrants may be adjusted in certain circumstances including
in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger, or consolidation. However, the
warrants will not be adjusted for issuances of Common Stock at a price below their respective exercise prices. Additionally, in no event
will the Company be required to