Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2130

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 2130
---
e, and requires a waiver,
should the selling price be below $1.00 per share.

F-21

For the period from February
14, 2024 through December 31, 2024, the Company sold 453,500 common shares of the Company for gross proceeds of approximately $4.9 million
under the Keystone ELOC. The Company received net proceeds of approximately $4.1 million, and as of December 31, 2024, the Company had
a stock subscription receivable of $716,694, which was collected in January 2025. The Company sought and received a waiver to sell the
shares below the applicable minimum price in the agreement. The Company also issued 18,644 shares of common stock to Keystone as consideration
for the ELOC in the period from February 14, 2024 to December 31, 2024, respectively.

Issuance of Common Stock to Arena Business Solutions Global SPC
II, Ltd. (“Arena”) for the Arena ELOC

On February 23, 2024, the
Company entered into a common stock purchase agreement (the “Arena Purchase Agreement”) with Arena, pursuant to which we may
sell and issue, and Arena is obligated to purchase, up to $25,000,000 of Common Stock. The price of the shares purchased by Arena under
the ELOC is 90% of various VWAP and closing price-based formulae, and requires a waiver, should the selling price be below $25.00 per
share. As consideration for Arena commitment to purchase shares of Common Stock pursuant to the Arena Purchase Agreement, in May 2024,
the Company issued 3,456 shares of Common Stock to Arena during the period from February 14, 2024 through December 31, 2024 valued at
$500,000, which is reflected as deferred offering costs on the accompanying consolidated balance sheet as of December 31, 2024. The Company
has sold no shares of Common Stock to Arena under the Arena ELOC during the period ended December 31, 2024.

NOTE 9 – WARRANTS

Accounting for warrants

The Company accounts for
warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms
and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging. The assessment considers whether the instruments
are free standing financial instruments pursuant to ASC 480, meet