Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 40

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 40
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. The conversion ratio was
based on the Series A Certificate of Designations and reflected the application of the Alternate Conversion Price described above, applicable
as of each date of conversion plus a 25% premium for penalties due. As a result of the 25% premium, during the nine months ended September
30, 2025, the Company recorded the following: 1) for 473 shares of Series A Preferred Stock converted during the continuance of a Trigger
Event as described above, the Company recorded a deemed dividend of $118,250, which represents the fair value of excess common stock convertible
and issuable to the preferred shareholders upon occurrence of the trigger event based on an average per share common share price of $95.00,
the effect of which was an increase in the net loss attributable to common shareholders in the accompanying condensed consolidated statement
of operations for the nine months ended September 30, 2025, and 2) for 625 shares of Series A Preferred Stock converted after the expiration
of a Trigger Event as described above, the Company recorded a stock-based inducement expense of $156,250, which represents the fair value
of excess common stock transferred to the preferred shareholders based on an average per share common share price of $95.00 and is reflected
as part of other income (expense), net, on the accompanying condensed consolidated statement of operations for the nine months ended September
30, 2025. Additionally, during the three and nine months ended September 30, 2025, Series C Preferred Stock was converted by investors
at a conversion price lower than the conversion price of the Series A Preferred Stock then in effect. The lower conversion price lowered
the Series A Preferred Stock conversion price from $39.20 per share to $1.76 per share. In connection with this down round triggering
event, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of $14,871,551, which represents
the fair value of excess common stock convertible and issuable to the preferred shareholders upon occurrence of the trigger event based
on an average per share common share price of $19.18, the effect of which was an increase in the net loss attributable to common shareholders
in the accompanying condensed consolidated statement of operations for the three and nine months ended September 30, 2025,

Additionally, certain investors
are owed an aggregate of 692 shares of Common Stock of the Company due to shortfall in number of shares issued