Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 109

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 109
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 2025.

Nasdaq Notices of Non-compliance
and Nasdaq Panel Decision

As previously disclosed,
on January 17, 2025, the Company received a letter setting forth the determination of a panel convened by Nasdaq (the “Nasdaq Panel”)
granting the Company’s request for an extension (the “Extension”) to regain compliance with certain continued listing
requirements of the Nasdaq Stock Market until April 22, 2025 (the “Extension Date”). The Company presented its plan (the “Plan”)
for regaining compliance with such requirements at a hearing conducted on December 17, 2025. The Company’s Plan included completion
of a reverse stock split, which occurred on January 8, 2025, and transferring the listing of its securities to the Nasdaq Capital Market,
which was completed on February 12, 2025, and certain other conditions, including the satisfaction of the $2.5 million minimum stockholders’
equity requirement for continued listing on the Nasdaq Capital Market.

In addition, as previously disclosed, from November 2024 through January
2025, the Company raised approximately $2.3 million of net proceeds from its equity line of credit entered into November 2024, and an
additional approximately $4.3 million of net proceeds from its public offering of shares of common stock, pre-funded warrants and warrants
to purchase shares of common stock that closed on February 7, 2025 (the “February 2025 Offering”). As a result of such capital
raising activities and the proceeds of the Private Placement received on the First Closing Date, as well as successful negotiations with
certain service providers to reduce outstanding balances payable, the Company received a notification letter from Nasdaq on May 7, 2025,
stating that the Company to have regained compliance with the Nasdaq continued listing standard under Nasdaq Listing Rule 5550(b)(1),
which requires, among other things, that the Company maintain at least $2.5 million in stockholders’ equity.

Results of Operations

Revenue

Predecessor and the Company
have not recognized any revenue from any sources, including from product sales, and the Company does not expect to generate any revenue
from the sale of products in the foreseeable future. If the development efforts for the Company’s product candidates, each of which
is a specific product and indication combination, are successful and result in regulatory approval, or if the Company executes license
agreements with third parties