Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 182

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 182
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 holders of Common Stock on an “as
if converted” basis.

23

The
Series A Common Warrants prohibit us from entering into specified fundamental transactions unless the Successor entity assumes all of
our obligations under the Series A Common Warrants under a written agreement before the transaction is completed. Upon specified corporate
events, a holder of Series A Common Warrants will thereafter have the right to receive upon exercise such shares, securities, cash, assets
or any other property whatsoever which the holder would have been entitled to receive upon the happening of the applicable corporate
event had the Series A Common Warrants been exercised immediately prior to the applicable corporate event. When there is a transaction
involving specified changes of control, a holder of Series A Common Warrants can request the Company to exchange the then unexercised
portion of their Series A Common Warrants for consideration equal to the Black-Scholes value thereof, which shall be settled, at the
option of the Company in either (i) the form of rights convertible into the consideration receivable by holders of the underlying shares
of common stock, based upon the value of the shares of the successor entity over a specified period or (ii) cash in an amount equal to
the Black-Scholes value.

The
Company’s Series A Common Warrants are exercisable into Common Stock and are recorded as equity.

September
2024 Series C Common Warrants (Successor)

The
Company’s 4,088 September 2024 Series C Common Warrants were initially exercisable for cash at an initial exercise price equal
to $196.00 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). The exercise price
is also subject to adjustment for the sale of Common Stock, or issuance or modification of options to result in the purchase of one share
of Common Stock at an effective price per share lower than the then current Series C Common Warrant exercise price. Additionally, should
the Company issue any variable priced convertible securities, the holders may elect an alternative exercise price that allows exercise
at the effective purchase price applicable to the convertible security.

The
September 2024 Series C Common Warrants are exercisable beginning six months after the issuance date (the “Initial Exercisability
Date”) and expire on the third anniversary of the Initial Exercisability Date. The Series C Common Warrants require “buy-in”
payments to be made by us for failure to deliver any shares of Common Stock issuable upon exercise