Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 115

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 115
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respectively.

35

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 fails to obtain regulatory approval for, its product
candidates, the ability of the Company to generate future revenue will be adversely affected. The Company does not know when, or if,
it will generate any revenue from its product candidates, and does not expect to generate revenue unless and until the Company
obtains regulatory approval and commercialization of its product candidates.

The Company expects its expenses
to increase significantly in connection with its ongoing activities, particularly as it continues and expands research, preclinical development,
and clinical development to support marketing approval for its product candidates. In addition, if the Company obtains approval for any
of its product candidates, the Company expects to incur significant commercialization expenses related to sales, marketing, manufacturing
and distribution. Furthermore, the Company expects to incur additional costs associated with operating as a public company.

The Company, therefore, anticipates
that substantial additional funding will be needed in connection with its continuing operations. At March 31, 2025, the Company had $5.1 million
in cash and cash equivalents. The Company intends to devote most of the 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)