Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080011
Chunk: 48

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 48
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 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 Series D Preferred Stock is classified as an equity security without a readily determinable fair value and is accounted
for under the measurement alternative in accordance with ASC 321, Investments – Equity Securities. Under this method,
the investment is initially recorded at cost, which was determined to be equal to the fair value of the consideration received, and is
subsequently adjusted for observable price changes in orderly transactions for the same or similar securities and for impairment, if
any. There was no impairment identified on the investment in equity securities during the period ended June 30, 2025. This non-cash transaction
did not impact the Company’s cash flows and is disclosed as a non-cash investing and financing activity in the condensed consolidated
statement of cash flows in accordance with ASC 230, Statement of Cash Flows.

On June 5, 2025, the Company sold an additional 938 shares of Series D Preferred Stock for gross cash proceeds of $750,400 in an additional closing of the Fourth PIPE Financing.

On June 25, 2025, we entered into an amendment (the “Amendment”) to the Fourth Securities Purchase Agreement pursuant to which the Company added certain new institutional investors to the schedule of buyers in the Fourth Securities Purchase Agreement, to issue and sell to such investors, in one or more closings shares of the Company’s Series D Preferred Stock. Also, on June 25, 2025, we sold an additional 2,315 shares of Series D Preferred Stock for gross cash proceeds of $1,852,000 in an additional closing of the Fourth PIPE Financing.

Each additional