Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 42

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 42
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daq, the Company has the right, at any time after the Stockholder
Approval Date (as defined below), with the written consent of the Required Holders, to lower the fixed conversion price to any amount
and for any period of time deemed appropriate by the board of directors of the Company.

Alternate
Conversion Upon a Triggering Event. Following the occurrence and during the continuance of a Series D Triggering Event (as defined
below), each holder may alternatively elect to convert the Series D Preferred Stock at the “Series D Alternate Conversion
Price” equal to the lesser of:

●The
                                            applicable Conversion Price, and

●the
                                            greater of:

●the floor price of $3.12; and

●80% of the lowest volume weighted average price of the Common Stock during the five consecutive trading days immediately prior to such conversion.

 The
Series D Certificate of Designations contains standard and customary triggering events (each, a “Series D Triggering
Event”), including but not limited to: (i) the suspension from trading or the failure to list the Common Stock within certain
time periods; (ii) failure to declare or pay any dividend when due; (iii) the failure to timely file or make effective a registration
statement on Form S-1 or Form S-3 pursuant to the Registration Rights Agreement (as defined below), (iv) the Company’s
failure to cure a conversion failure or notice of the Company’s intention not to comply with a request for conversion of any Series D
Preferred Stock, and (iv) bankruptcy or insolvency of the Company.

19

Other Adjustments. In
connection with the April 2025 Private Placement, the Company has agreed to seek stockholder approval at a special meeting of stockholders,
of the issuance of Conversion Shares at a conversion price below the Conversion Price (the date of such approval, the “Series D
Stockholder Approval Date”). If the Company did not obtain such stockholder approval prior to May 31, 2025, then the Company
would have been required to (i) file a preliminary Proxy Statement seeking such stockholder consent with the SEC no later than May 31,
2025, (ii) use reasonable best efforts to file the definitive Proxy Statement no later than June 30, 2025 and (iii) use
reasonable best efforts to hold the Stockholder Meeting no later than July 31, 202