Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 391

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 4
Chunk 391
---
 a registration statement
on Form S-1. Using a Form S-1 registration statement for a public offering would likely take significantly longer than using a registration
statement on Form S-3 and increase our transaction costs, and could, to the extent we are not able to conduct offerings using alternative
methods, adversely impact our liquidity, ability to raise capital or complete acquisitions in a timely manner. The use of Form S-1 would
also prevent us from conducting offerings on a “shelf basis,” limiting our flexibility as to the terms, timing or manner of
any such offering.

We cannot guarantee that
in the future our reporting will always be timely. If we are unable to satisfy SEC filing deadlines or otherwise provide disclosures of
material information on a timely basis, stockholders and potential investors in our Common Stock may have incomplete information about
our business and results of operations, which may impact their ability to make an informed investment decision, result in a reduction
in the trading price, trading volume or analyst coverage of our Common Stock or expose us to potential liability.

44

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

During
the three months ended June 30, 2025, 198 shares of Series B Preferred Stock were converted into 42,258 shares of Common Stock. The conversion
ratio was based on the Series B Certificate of Designations and included the 25% premium to the greater of the conversion amount or the
number of shares multiplied by the highest closing price within the preceding 20 days.

During the three months ended June 30, 2025, 2,477 shares of Series
C Preferred Stock were converted into 808,444 shares of Common Stock. The conversion ratio was agreed upon by the Company and investors
and ranged from $1.76 to $5.00 per share, which was lower than the conversion price based on the Series C Certificate of Designations
Alternate Conversion Price.

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 to investors for aggregate
consideration of $500,000, paid through the transfer of 1,000,279 shares of Series D Preferred Stock of Stella Diagnostics, Inc. owned
by such investors, in lieu of cash, which are included in investment in equity securities on the accompany unaudited