Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 47

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 47
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 may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our product candidates.

Until such time, if ever,
as we can generate substantial revenue from the sale of our product candidates, we will need substantial additional financing to develop
our product candidates and implement our operating plans. To the extent that we raise additional capital through the sale of equity or
convertible debt securities, your ownership interest will be diluted, and the terms of these securities may include liquidation or other
preferences that could adversely affect your rights as a common stockholder. Debt financing and preferred equity financing, if available,
may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional
debt, making capital expenditures or declaring dividends.

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If we raise additional funds
through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may be required
to relinquish valuable rights to our research programs or product candidates or grant licenses on terms that may not be favorable to
us or that may be at less than the full potential value of such rights. If we are unable to raise additional funds through equity or
debt financings or other arrangements with third parties when needed, we may be required to delay, limit, reduce or terminate our drug
development or future commercialization efforts or grant rights to third parties to develop and market product candidates that we would
otherwise prefer to develop and market ourselves.

The issuance of shares of our Common Stock upon conversion or exercise of our outstanding Preferred Shares and Common Warrants and other securities that we may issue in future financing transactions may result in substantial dilution to our stockholders.

As
of the date of this prospectus, the Company currently has outstanding (i) 2,053 shares of
Series A Preferred Stock with a conversion value of approximately $2.6 million, convertible
into shares of Common Stock at a conversion rate of the stated value thereof divided by a
current effective conversion price of $100.00; (ii) 273 shares of Series B Preferred Stock
with a conversion value of approximately $0.3 million, convertible into shares of Common
Stock at a conversion rate of the stated value thereof divided by a current effective conversion
price of approximately $3.072; (iii) 2,853 shares of Series C Preferred Stock with a stated
value of approximately $2.9 million, convertible into shares of Common Stock at a conversion
rate