Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 74

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 74
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. Additional funds are necessary to maintain current operations and to continue R&D activities. However,
there can be no assurance that sufficient funding will be available to allow the Company to successfully continue its R&D activities
and planned regulatory filings with the FDA. If the Company is unable to obtain the necessary funds, significant reductions in spending
and the delay or cancellation of planned activities may be necessary. These actions would have a material adverse effect on the Company’s
business, results of operations, and prospects. These conditions raise substantial doubt about the Company’s ability to continue
as a going concern within one year from the date these accompanying financial statements are issued. The accompanying financial statements
do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification
of liabilities that might result from the outcome of this uncertainty.

Recent
Developments

Reverse
Stock Splits

At 12:01 a.m. Eastern time
on January 8, 2025, the Company effected the Reverse Stock Split pursuant to which each 100 shares of Common Stock outstanding immediately
prior thereto was converted into 1 share of Common Stock outstanding immediately thereafter, and at 12:01 a.m. Eastern time on June 13,
2025, the Company effected the Reverse Stock Split pursuant to which each 20 shares of Common Stock outstanding immediately prior thereto
was converted into 1 share of Common Stock outstanding immediately thereafter.

April
2025 PIPE Financing

As discussed above, on April
21, 2025, the Company entered into the Fourth Securities Purchase Agreement, pursuant to which the Company agreed to issue and sell up
to 10,000 shares of Series D Preferred Stock for an aggregate purchase price of up to $8 million in one or more closings. On April 22,
2025, the Company consummated a private placement of 6,250 shares of Series D Preferred Stock pursuant to the Fourth Securities Purchase
Agreement, by and among the Company and certain investors in exchange for the receipt of 1,000,279 shares of the Stella Series D Preferred
in lieu of cash, which is included in investment in equity securities on the accompanying unaudited condensed balance sheet as of June
30, 2025. The fair 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