Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 237

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 237
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| Net cash provided by financing activities:           |     |                           |                        12,240,682 |   |     |   |       571,679 |   |     |   | 11,669,003 |   |
| Net increase (decrease) in cash and cash equivalents |     | $                         |                           864,809 |   |     | $ |    (4,257,539 | ) |     | $ |  5,122,347 |   |

Net cash used in operating activities

Net cash used in operating
activities increased $6.6 million from $4.8 million to $11.4 million in the nine-month period ended September 30, 2023 and 2024 respectively.
The increase in cash used was largely related to having a $4.9 million increase in the adjustment to net loss related to the gain on
the revaluation of derivative liabilities. The difference in net loss reflected $3.0 million more cash being used, offset by a larger
non-cash adjustment for stock-based compensation of $1.9 million in the nine-month period ended September 30, 2024 versus 2023. The difference
of $0.1 million of cash resulting from increasing accounts payable and accruals was offset by $0.1 million increase in prepaid expenses
and $0.6 million in vendor settlements in the nine-month period ended September 30, 2024 versus 2023. The remaining difference was an
additional $0.1 million in adjustment to lease liability due to rent escalation.

Net cash provided by financing activities

Net cash provided by financing
activities increased $11.7 million from $0.6 million in the nine-month period ended September 30, 2023 to $12.2 million in the nine-month
period ended September 30, 2024. The increase was related to the net proceeds of $7.3 million from the issuance of Series A and B Preferred
Stock, the net proceeds of $0.7 million from the issuance of Series C Preferred Stock and associated warrants, the gross proceeds of
$5.2 million for the sale of common stock under the ELOC, and $0.1 million related to net insurance financing. These increases in cash
were partially offset by the $0.6 million borrowing under the bridge loan in 2023, for which there was no equivalent in the nine-month
period ended September 30, 2024.

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