Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 21

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 21
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 commercialization.

The BCA was amended on February
5, 2024 and again on February 13, 2024. The Merger closed on February 14, 2024 (the “Closing”), at which time the following
occurred:

    1. The outstanding shares of Predecessor’s preferred stock were converted into 44,155 shares of Common Stock, par value $0.0001 per share (the “Common Stock”), valued at $21,635,926. 

2.The
outstanding shares of Predecessor’s common stock were converted into 5,845 shares of Common Stock, valued at $2,864,074.

3.Each
holder of Predecessor’s common stock received a pro rata portion of up to 12,000 earnout shares of restricted Common Stock (the
“BCA Earnout Shares”), valued at $5,880,000, 10,000 of which are subject to vesting upon the achievement of certain stock
price-based earnout targets and 2,000 of which are subject to vesting upon a change of control, respectively.

4.Certain
holders of Predecessor’s common stock received a pro rata portion of 8,750 earnout shares of Common Stock (the “Reallocation
Shares”), valued at $4.29 million, which became fully vested upon the Closing.

5.Certain
holders of Predecessor’s common stock and convertible bridge notes received a pro rata portion of 10,000 earnout shares (the “IND
Earnout shares”) of restricted Common Stock, valued at $4,900,000, which vested when the Company filed an investigational new drug
(“IND”) application with the Food and Drug Administration (“FDA”). The earning of these shares was accompanied
by a forfeiture of 10,000 restricted shares of Common Stock held by the sponsor following receipt of an acknowledgement notice by the
Sponsor.

6.Each
outstanding Predecessor option was converted into an option to purchase a number of shares of Common Stock, equal to the Predecessor’s
common stock underlying the option multiplied by the Exchange Ratio factor of 0.064452, at an exercise price per share equal to the Predecessor
option exercise price divided by the Exchange Ratio factor.

7.Each
warrant to purchase the Predecessor’s preferred stock was converted into a warrant to acquire a number of shares of Common Stock
obtained by dividing the