Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 430

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 430
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 (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). F-58

The Company’s December
2024 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 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 to approximately $ million,
which were considered offering costs and were netted against the net proceeds received by the warrant exercise under the guidance of ASU
2021-04.

Preferred Warrants

The Preferred Warrants
were initially exercisable for cash at an exercise price equal to $. The exercise price was subject to adjustment for stock splits,
combinations and similar events, and, in the event of stock dividends and splits, the number of shares of Series A Preferred Stock issuable
upon the exercise of the Preferred Warrant will also be adjusted so that the aggregate exercise price shall be the same immediately before
and immediately after any such adjustment.

We had the right, conditional
upon the share price of CERO stock to be trading above $ per share, to require the holders of Preferred Warrants to exercise such
Preferred Warrants into up to an aggregate number of shares of Preferred Stock equal to the holder’s pro rata amount of shares
of Preferred Stock. In connection with the Series C PIPE Financing, we agreed with certain holders of the Preferred Warrants not to exercise
such right to require such exercise by the holders thereof in consideration for their investment in the Series C PIPE Financing.

The Preferred Warrants prohibited
us from entering into specified