Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 183

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 183
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. The lower conversion price
lowered the Series B Preferred Stock conversion price from the contractual conversion price to $1.76 per share. In connection with this
down round triggering event, during the nine months ended September 30, 2025, the Company recorded a deemed dividend of $482,953, which
represents the fair value of excess common stock convertible and issuable to the preferred shareholders upon occurrence of the trigger
event based on a per share common share price of $6.87, 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. As of the date of this
triggering event and September 30, 2025, 70,299 shares of common stock remain issuable to then holder of Series B Preferred Stock.

As of September 30, 2025,
there were no remaining shares of Series B Preferred Stock.

Successor Series C Convertible Preferred Stock

The Company designated 2,853
shares of its authorized preferred stock as the Series C Preferred Stock and the rights, preferences and privileges of the Series C Preferred
Stock are summarized below.

Each share of Series C Preferred
Stock has a stated value of $1,000 per share and, when issued, the Series C Preferred Stock was fully paid and non-assessable. The Series
C Preferred Stock ranks senior to all other Company capital stock unless required holder votes are obtained to create a class of stock
senior to Series C Preferred Stock.

Ranking: The Series
C Preferred Stock are senior in rank with respect to the preferences as to dividends, distributions and payments upon the liquidation,
dissolution and winding up of the Company to the Series A Convertible Preferred Stock, Series B Convertible Preferred Stock, and Common
Stock. The Company shall not, without the consent of the Required Holders, authorize or issue any shares of senior rank with respect to
the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company, shares of
pari passu rank with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding
up of the Company, or shares of junior ranking stock that have a maturity or redemption date prior to the first anniversary of the Series
C Preferred Stock issuance date.

Dividend and Participation
Rights: The holders of Series C Preferred Stock will be entitled to dividends, on an