Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 47

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 47
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 value to the
Aggregate Black Scholes Value issuable upon conversion of the Rights to be determined in increments of 10% (or such greater percentage
as the Holder may notify the Company from time to time) of the portion of the Aggregate Black Scholes Value attributable to such Shares
(the “Share Value Increment”), with the aggregate number of Shares issuable upon exercise of the Rights with respect to the
first Successor Share Value Increment determined based on 70% of the Closing Bid Price of the Shares on the date the Rights are issued
and on each of the nine subsequent Trading Days, in each case, the aggregate number of additional Shares issuable upon exercise of the
Rights shall be determined based upon a Share Value Increment at 70% of the Closing Bid Price of the Shares in effect for such corresponding
Trading Day (such ten (10) Trading Day period commencing on, and including, the date the Rights are issued, the “Rights Measuring
Period”), or (II) in cash; provided, that the Company shall not consummate a Fundamental Transaction if the Corporate Event Consideration
includes capital stock or other equity interest (the “Successor Shares”) either in an entity that is not listed on an Eligible
Market or an entity in which the daily share volume for the applicable Successor Shares for each of the twenty Trading Days prior to the
date of consummation of such Fundamental Transaction is less than the aggregate number of Successor Shares issuable to the Holder upon
conversion in full of the applicable Rights (without regard to any limitations on conversion therein, assuming the exercise in full of
the Rights on the date of issuance of the Rights and assuming the Closing Bid Price of the Successor Shares for each Trading Day in the
Rights Measuring Period is the Closing Bid Price on the Trading Day ended immediately prior to the time of consummation of the Fundamental
Transaction).

24

The Company’s December
2024 Common Warrants and January 2025 Common Warrants are exercisable into Common Stock, which has no cash redemption features that require
liability treatment. The Company has recorded the December 2024 Common Warrants and January 2025 Common Warrants as equity.

On December 23, 2024, in
connection with the issuance of the December 2024 Warrants, the Company calculated the fair value of such warrants using the Black-Scholes
option-pricing model, and the Company determined that the aggregate total fair value of the December 2024 Warrants amounted