Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2129

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 2129
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. All classes of the Predecessor’s stock had a par value of $0.0001. On February 14, 2024,
on the close of the Merger, the Predecessor’s outstanding convertible preferred stock converted to Common Stock at a conversion
ratio of 0.0806 and 0.01757 shares of Common Stock for each share of Predecessor Series Seed Convertible Preferred Stock and Predecessor
Series A Convertible Preferred Stock, respectively. This resulted in the issuance of 4,155 and 40,000 shares of Common Stock for the Predecessor’s
Series Seed Preferred Stock and Predecessor Series A Preferred Stock, respectively.

Predecessor’s Series
Seed and Series A Preferred Stock had cash redemption features outside of its control, and therefore were classified in a mezzanine section
presented on the balance sheets between liabilities and stockholders’ deficit.

Purchase of Common Stock by Keystone Capital Partners under the
Equity Line of Credit (“ELOC”)

On February 14, 2024, in
conjunction with, and as a condition to the closing of the Series A PIPE Financing, the Company entered into a common stock purchase agreement
(the “Old Keystone Purchase Agreement”) with Keystone Capital Partners, L.P. (“Keystone”), pursuant to which we
may sell and issue, and Keystone is obligated to purchase, up to 250,000 shares subject to the Company obtaining all necessary stockholder
approvals to issue the shares to Keystone. The price of the shares purchased by Keystone under the ELOC is 90% of various volume-weighted
average price (“VWAP”) and closing price-based formulae, and requires a waiver, should the selling price be below $100.00
per share. As consideration for Keystone’s commitment to purchase shares of Common Stock pursuant to the Old Keystone Purchase Agreement,
we issued an aggregate of 18,643 shares of Common Stock to Keystone.

On November 8, 2024, the
Company consummated a purchase agreement with Keystone (the “New Keystone Purchase Agreement”) pursuant to which we may sell
and issue, and Keystone is obligated to purchase, up to $20.6 million of shares of Common Stock, constituting the remaining unsold balance
under the original Keystone Purchase Agreement, subject to certain market conditions. The price of the shares purchased by Keystone under
the ELOC is 90% of various volume-weighted average price (“VWAP”) and closing price-based formula