Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 85

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 85
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 $4,700,000 gain from
change in value of the Company’s earnout liability and a $320,000 gain recorded for the change in value of the Predecessor’s
preferred stock warrant liability during the six months ended June 30, 2024 as compared to $0 during the six months ended June 30, 2025,
(2) the recording of a gain on settlement of vendor liabilities of $589,000 during the six months ended June 30, 2024 compared to $0 during
the six months ended June 30, 2025, and (3) the recording of stock-based inducement expense of $864,000 during the six months ended June
30, 2025 as compared to $0 during the six months ended June 30, 2024. These decreases in other income, net were offset by the recording
of other expense of $631,000 during the six months ended June 30, 2024 related to registration rights penalties recorded compared to $0
during the six months ended June 30, 2025, and an increase in interest income, net of $41,000.

Net
loss and net loss attributable to common stockholders

For the six months ended
June 30, 2025 and 2024, net loss amounted to $10,523,000 and $4,748,000, respectively, which represents an increase in net loss of $5,775,000,
or 121.6%. During the six months ended June 30, 2025, in connection with our Series A, Series B and Series C preferred stock conversions,
and the redemption of Series C Preferred Stock, we recorded deemed dividends of $24,965,000, and in connection with the adjustment in
the exercise price of Series C Common Warrants, we recorded deemed dividends of $84,000. Accordingly, for the six months ended June 30,
2025 and 2024, net loss attributable to common stockholders amounted to $35,572,000, or $(107.60) per common share, and $4,748,348, or
$(604.19) per common share, respectively.

Liquidity
and Capital Resources

Capital
Requirements

Predecessor
and the Company have not generated any revenue from any source and the Company does not expect to generate revenue for at least the next
few years. If the Company fails to complete the timely development of, or