Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 354

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 354
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 the Preferred Stock rights and preferences and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging. The Company has concluded that the Series C Preferred Stock, which has no cash redemption features outside of the Company’s control and are treated as equity. The Company has also concluded that the Series C Common Warrants do not possess redemption features outside of the Company’s control and are treated as equity. On March 10, 2025, the Company paid certain investors $ 395,000for the redemption of 316shares of the Series C Preferred Stock, which included $ 267,856of the initial purchase price and a cash redemption premium of $ 127,144. During the nine months ended September 30, 2025, the $ 127,144of excess paid over the initial purchase price was included in deemed dividend on the accompanying condensed consolidated statement of operations. During the three months ended June 30, 2025, 2,477shares of Series C Preferred Stock were converted into 808,444shares of Common Stock. The conversion ratios were agreed upon by the Company and investors and ranged from $ 1.76to $ 5.00per share, which was lower than the conversion price based on the Series C Certificate of Designations Alternate Conversion price. As a result, pursuant to ASC 470-20, upon initial down round triggering events, the Company recorded a stock-based inducement expense of $ 707,300, which represents the fair value of excess common stock transferred to the preferred shareholders based on an average per common share price of $ 7.50and is reflected as part of other income (expense), net, on the accompanying condensed consolidated statement of operations during the nine months ended September 30, 2025. Additionally, subsequent to the initial triggering events, during the three and nine months ended September 30, 2025, Series C Preferred Stock was converted by investors at a conversion price lower than the contractual conversion price of the Series C Preferred Stock then in effect. The initial triggering events lowered the Series C Preferred Stock conversion price from $ 39.20per share to $ 5.00and from $ 5.00per share to $ 1.76per share. In connection with these down round triggering events, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of $ 0and $ 9,340,120, respectively, which represents the fair value of excess common