Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 46

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 46
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Reservation
Requirements. So long as any Series D Preferred Stock remains outstanding, the Company shall at all times reserve at least 250%
of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all Series D Preferred
Stock then outstanding.

On
April 21, 2025, the Company entered into a Securities Purchase Agreement (the “Fourth Securities Purchase Agreement”) with
certain accredited investors. Pursuant to the Fourth Securities Purchase Agreement, up to 10,000 shares of the Company’s Series
D Preferred Stock shall be purchased for an aggregate purchase price of up to $8 million in one or more closings.

 On
April 22, 2025, pursuant to the Fourth Securities Purchase Agreement, the Company issued and sold, and the investors purchased, in a
private placement (the “Fourth PIPE Financing”), 6,250 shares of the Series D Preferred Stock in exchange for the receipt
of 1,000,279 shares of Series D Preferred Stock of Stella Diagnostics, Inc, (the “Stella Series D Preferred Stock”), in lieu
of cash, which is included in investment in equity securities on the accompanying unaudited condensed balance sheet as of June 30, 2025.
Pursuant to the Fourth PIPE Financing, on April 22, 2025, the Company issued 6,250 shares of its Series D Preferred Stock to investors
in exchange for 1,000,279 shares of Series D Preferred Stock of Stella Diagnostics, in which a portion of the Series D Preferred Stock
of Stella Diagnostics was owned by a related party investor (see Note 13). The fair value of Stella’s Series D Preferred Stock
received was determined to be $500,000 as of the transaction date, based on the subsequent sale of the 1,000,279 Stella Series D Preferred
Stock for $500,000 in cash, pursuant to a Stock Purchase Agreement dated August 20, 2025 (see Note 14). Accordingly, the Company recognized
the issuance of its Series D Preferred Stock to investors at a cost of $500,000, which represents the fair 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