Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 68

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 68
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 available cash to the preclinical and clinical development of
its product candidates and public company compliance costs. Based on current business plans, the Company believes that the cash available
at March 31, 2025 will not fund its operations and capital requirements for 12 months after the filing of these unaudited condensed financial
statements for the period ended March 31, 2025. The Company has arranged two equity lines of credit, one providing for the sale of up
to 25,000,000 newly issued shares of Common Stock and the other providing for the purchase of up to $20.6 million of Common Stock on the
satisfaction of certain conditions. The Company has no guarantee that the conditions will be satisfied to require the purchase of all,
or any additional amount, of the ELOC funds. On February 5, 2025, the Company entered into the SPA, with participation from a member of
the Company’s Board and a single institutional investor, for the purchase and sale of (i) 2,551,020 shares of our common stock or
common stock equivalents in lieu thereof; and (ii) February 2025 Common Warrants to purchase up to 2,551,020 shares of common stock, at
a combined public offering price of $1.96 per share and warrant. In connection with this offering, the Company received net proceeds of
approximately $4.3 million. Additionally, during the three months ended March 31, 2025, the Company received net proceeds from the exercise
of the remaining Series A Preferred Warrants, the collection of subscriptions receivable and ELOC fundings of approximately $2.4 million.
Any estimate as to how long the Company expects the net proceeds from the ELOC funding may fund the Company’s operations is based
on assumptions that may prove to be wrong, and the Company could use its available capital resources sooner than its current expectations.
Changing circumstances, some of which may be beyond the Company’s control, could result in less cash and cash equivalents available
to fund operations or cause the Company to consume capital significantly faster than currently anticipated, and the Company may need to
seek additional funds from additional sources sooner than planned.

Because of the numerous risks
and uncertainties associated with research, development and commercialization of pharmaceutical drug products, the Company is unable to
estimate the exact amount of its operating capital requirements. The Company’s future funding requirements will depend on many factors,
including, but not limited to those listed under “Factors Affecting