Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 108

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 108
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116.40, (vi) February 2025 Common Warrants to purchase an aggregate of 127,551 shares of Common Stock at an exercise price of $39.20,
(vii) Pre-Funded Warrants to purchase an aggregate of 10,787 shares of Common Stock at an exercise price of $0.002, (ix) Public Warrants
and Private Placement Warrants to purchase an aggregate of 4,596 shares of Common Stock at an exercise price of $23,000.00 per share,
(x) 5,352 shares of Series D Preferred Stock with a conversion value of approximately $5.4 million, convertible into shares of Common
Stock at a conversion rate of the stated value thereof divided by a current effective conversion price of $0.05, and (xi) 3,816 shares
of Series E Preferred Stock with a conversion value of approximately $3.8 million, convertible into shares of Common Stock at a conversion
rate of the stated value thereof divided by a current effective conversion price of $4.1625.

46

Although each of the conversion
price of most of the Preferred Shares and the exercise prices of the December 2024 Common Warrants, January 2025 Common Warrants, Series
A Warrants and February 2025 Common Warrants are at or above the trading price of our Common Stock as of the date of this Quarterly Report,
if such trading price increases, such conversion prices and exercise prices will not change as a result thereof and could be below the
trading price of our Common Stock as of the date of any future conversion or exercise thereof, resulting in dilution to our stockholders.
In addition, the terms of the Series A Preferred Stock, the Series C Preferred Stock, Series D Preferred Stock and Series E Preferred
Stock contain certain penalties and adjustments to the amount included in determination of the conversion rate following certain breaches
of the Company’s obligations thereunder, including, among other things, as a result of a failure to file or cause the SEC to declare
one or more registration statements relating to the resale of the shares of Common Stock issuable upon conversion thereof by specified
deadlines, certain defaults under indebtedness of the Company or judgments against the Company and failure to deliver shares of Common
Stock upon conversion in a timely manner. For example, the penalties and adjustments include a 25% premium added to the stated value
for determining the conversion rate in connection with breaches other than the breach of the requirement to redeem the shares of Series