Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 45

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 45
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 5, 2025
  
    Exercise price 
    $0.04 to $9.80
  
    Term (years) 
    3.0
  
    Expected stock price volatility 
    109.17%
  
    Risk-free rate of interest 
    4.19%

The Company’s Series
C Common Warrants are exercisable into Common Stock and are recorded as equity.

23

December 2024 and January 2025 Common Warrants (Successor)

On December 23, 2024, the
Company issued warrants to purchase an aggregate of 84,061 shares of Common Stock to certain investors affiliated with each other to induce
investors to exercise their Series A Preferred Warrants for cash (the “December 2024 Common Warrants”). The December 2024
Common Warrants are exercisable for cash at an initial exercise price equal to $5.61 (as adjusted for stock splits, stock dividends, stock
combinations, recapitalizations and similar events). The December 2024 Common Warrants are exercisable beginning six months after the
issuance date (the “Initial Exercisability Date”) and expire on the third anniversary of the Initial Exercisability Date.
The December 2024 Common Warrants require “buy-in” payments to be made by us for failure to deliver any shares of Common Stock
issuable upon exercise. If at the time of exercise of the December 2024 Common Warrants, there is no effective registration statement
registering the shares of the Common Stock underlying the December 2024 Common Warrants, such warrants may be exercised on a cashless
basis pursuant to their terms.

On January 6, 2025, the Company
issued warrants to purchase an aggregate of 163,853 shares of Common Stock to certain investors affiliated with each other to induce investors
to exercise their Series A Preferred Warrants for cash (the “January 2025 Common Warrants”). The January 2025 Common Warrants
are exercisable for cash at an initial exercise price equal to $5.82 (as adjusted for stock splits, stock dividends, stock combinations,
recapitalizations and similar events). The January 2025 Common Warrants are exercisable beginning six months after the issuance date (the
“Initial Exercisability Date”) and expire on the third anniversary of the Initial Exercisability Date. The January 2025 Common
Warrants require “buy-in” payments to be made by us