Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 301

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 301
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000,279 Stella Series D Preferred Stock for
$500,000 in cash, pursuant to a Stock Purchase Agreements dated August 20, 2025. 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 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 September 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. As of September 30, 2025, the value of Stella’s Series D Preferred Stock received
was determined to be $500,000, based on the subsequent sale of the 1,000,279 Stella Series D Preferred Stock for $500,000 in cash, pursuant
to Stock Purchase Agreements dated August 20, 2025.

On June 5, 2025, we 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 $