Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 217

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 217
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 as may be required. If we complete a business combination, we may repay such loaned amounts
out of the proceeds of the Trust Account released to us. In the event that a business combination does not close, we may use a portion
of the working capital held outside the Trust Account to repay such loaned amounts, but no proceeds from our Trust Account would be used
for such repayment. Up to $1,500,000 of such loans may be converted into units of the post business combination entity, at a price of
$10.00 per unit, at the option of the lender. The units would be identical to the Private Placement Units. On December 13, 2022,
we entered into a promissory note with the Sponsor. In order to fund ongoing operations, the Sponsor will loan up to $1,500,000 to us.
On December 8, 2023, the Promissory Note was amended to increase the aggregate amount from $1,500,000 to $1,600,00. As of December 31,
2023 and 2022, there was $1,555,000 and $650,000 of outstanding borrowings under the working capital loan arrangement, respectively.
On February 14, 2024, the Sponsor surrendered the Promissory Note to us in payment of its subscription price for Series A Preferred Stock
in the financing transaction described above.

Our ability to continue
as a going concern is dependent on its ability to raise additional capital to fund its R&D activities and meet its obligations on
a timely basis. Since inception, we have incurred net losses and operating cash flow deficits, resulting in an accumulated deficit of
$43.3 million as of December 31, 2023. On February 14, 2024, we acquired the assets of CERo Therapeutics, Inc., closed the PIPE
Financing with gross proceeds of $9.8 million, and assumed the R&D operations of Legacy CERo. 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 us to successfully continue its R&D activities and planned regulatory filings with the FDA. If we are unable to obtain 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 our business, results of operations, and prospects. These conditions raise substantial doubt about our ability