Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 72

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 72
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 offering, we received net proceeds of approximately $4.2 million. Additionally,
during the six months ended June 30, 2025, we received net proceeds from the exercise of the remaining Series A Preferred Warrants, the
collection of subscriptions receivable and equity line of credit fundings of approximately $2.4 million.

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On April 21, 2025, the Company entered into a Securities Purchase Agreement
(the “Fourth Securities Purchase Agreement”) with certain accredited investors named therein. Further, on April 22, 2025,
the Company filed the Certificate of Designations of Rights and Preferences of the Series D Preferred Stock (the “Series D Certificate
of Designations”) for the purpose of designating and establishing the Company’s Series D Preferred Stock. Pursuant to the
Securities Purchase Agreement, up to 10,000 shares of the Company’s Series D Preferred Stock shall be purchased for an aggregate
purchase price of up to $8 million in one or more closings (each a “Closing”).

On April 22, 2025, the Company
issued 6,250 shares of its Series D preferred stock to investors in exchange for 1,000,279 shares of Series D preferred stock of Stella
Diagnostics. The transaction was completed in lieu of a cash payment. The value of Stella’s Series D Preferred Stock received was
determined to be $500,000 as of the transaction date, based on the subsequent sale of the 1,000,279 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