Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 184

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 184
---
 date the down-round feature was triggered, using the current
exercise price at the time of $196.00 and the new exercise price of $0.80. The deemed dividend increased net loss attributable to common
shareholders by $83,083 in the condensed consolidated statement of operations for the six months ended June 30, 2025. The fair value of
the Series C Common Warrants immediately prior to and immediately after the exercise price adjustment, were estimated using the Black-Scholes
option-pricing model with the following assumptions:

    February
    5, 2025
  
    Exercise price 
    $0.80 to $196.00
  
    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.

24

December
2024 and January 2025 Common Warrants (Successor)

On
December 23, 2024, the Company issued warrants to purchase an aggregate of 4,203 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 $112.20 (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 8,193 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