Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 231

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 231
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 dated August 20, 2025. Accordingly, the Company
recognized the issuance of its Series D Preferred Stock to investors at a cost of $500,000, which represents the value of the consideration
received. The difference between the stated value of the Company’s Series D Preferred Stock ($5.0 million) and the fair value of
the consideration received ($500,000) was recorded as a decrease to additional paid-in capital, which amounted to $4.5 million. The investment
in Stella’s Series D 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 June 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 938 shares of Series D Preferred Stock for gross cash proceeds of $750,400 in an additional
closing of the Fourth PIPE Financing.

On June 25, 2025, the Company
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, the Company sold an additional
2,315 shares of Series D Preferred Stock for gross cash proceeds of $1,852,000 in an additional closing of the Fourth PIPE Financing.

Item
3. Defaults Upon Senior Securities

None.

Item
4. Mine Safety Disclosures

Not
applicable.

Item
5. Other Information

From
time to time, our officers (as defined in Rule 16a–1(f)) and directors may enter into Rule 10b5-1 or non-Rule 10b5-1 trading arrangements
(as