Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 420

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 420
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2024, on the close of the business
combination (the “Business Combination”), pursuant to the Business Combination Agreement, dated as of June 4, 2023, as amended
from time to time (as amended, the “Business Combination Agreement”) by and among the Company, Phoenix Biotech Acquisition
Corp. (“PBAX”) and PBCE Merger Sub, Inc. (“Merger Sub”), the outstanding convertible preferred stock converted
to CERo Therapeutics Holdings, Inc. (“New CERo”) common stock at a conversion ratio equal to 0.0806 and 0.1757 shares of
New CERo common stock, par value $0.0001 per share (“New CERo Common Stock”) for each share of Series Seed convertible
preferred stock (“Series Seed Preferred Stock”) and Series A convertible preferred stock (“Series A
Preferred Stock”), respectively, resulting in the issuance of 415,498 and 3,999,997 common shares for the Series Seed Preferred
Stock and Series A Preferred Stock, respectively (see Note 15).

At December 31, 2023 and 2022, convertible
preferred stock consisted of the following:

|             |     | Shares authorized |            |     | Shares      
 issued and  
 outstanding |            |     | Liquidation amount |            |
|:------------|:----|:------------------|-----------:|:----|:------------|-----------:|:----|:-------------------|-----------:|
| Series Seed |     |                   |  5,155,703 |     |             |  5,155,703 |     | $                  |  4,154,981 |
| Series 1    |     |                   |        100 |     |             |          - |     |                    |          - |
| Series A    |     |                   | 24,614,402 |     |             | 22,764,764 |     |                    | 39,999,967 |
|             |     |                   | 29,770,205 |     |             | 27,920,467 |     | $                  | 44,154,948 |

Series 1 Convertible Preferred Stock –
The Company issued 100 shares of Series 1 preferred stock (“Series 1 Preferred Stock”) in 2018, which was subsequently converted
on November 14, 2019 into 2,845,597 shares of Series A Preferred Stock. There were no