Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 361

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 361
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 500,000as of the transaction date, based on the subsequent sale of the 1,000,279Stella Series D Preferred Stock for $ 500,000in 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 ($ 5.0million) and the fair value of the consideration received ($ 500,000) was recorded as a decrease to additional paid-in capital, which amounted to $ 4.5million. The investment in Stella’s Series D Preferred Stock is classified as an equity security without a readily determinable fair value and is accounted for under the measurement alternative in accordance with ASC 321, Investments – Equity Securities. Under this method, the investment is initially recorded at cost, which was determined to be equal to the fair value of the consideration received, and is subsequently adjusted for observable price changes in orderly transactions for the same or similar securities and for impairment, if any. There was no impairment identified on the investment in equity securities during the period ended September 30, 2025. This non-cash transaction did not impact the Company’s cash flows and is disclosed as a non-cash investing and financing activity in the condensed consolidated statement of cash flows in accordance with ASC 230, Statement of Cash Flows. On June 5, 2025, the Company sold an additional 938shares of Series D Preferred Stock for gross cash proceeds of $ 750,400in an additional closing of the Fourth PIPE Financing. On June 25, 2025, we entered into an amendment (the “Amendment”) to the Fourth Securities Purchase Agreement pursuant to which the Company added certain new institutional investors to the schedule of buyers in the Fourth Securities Purchase Agreement, to issue and sell to such investors, in one or more closings shares of the Company’s Series D Preferred Stock. Also, on June 25, 2025, we sold an additional 2,315shares of Series D Preferred Stock for gross cash proceeds of $ 1,852,000in an additional closing of the Fourth PIPE Financing. On July 18, 2025, the Company sold an additional 497shares of Series D Preferred Stock for gross cash proceeds of $ 432,600in an additional closing, and the Company