Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 106

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 106
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 the Reverse Stock Split).

30

Going concern

The accompanying financial
statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets
and satisfaction of liabilities in the normal course of business. The Company’s 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. As of March 31,
2025, the Company reported $5.1 million of cash and cash equivalents, with an accumulated deficit of $76.0 million.

On February 5, 2025, we entered
into a securities purchase agreement, with participation from a member of the Board and a single institutional investor, for the purchase
and sale of (i) 2,551,020 shares of 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 an exercise price of $1.96. In connection with such offering, we received net proceeds
of approximately $4.3 million. Additionally, during the three months ended March 31, 2025, we received net proceeds from the exercise
of the remaining Series A Preferred Warrants, the collection of subscriptions receivable and equity line of credit fundings of approximately
$2.4 million.

Further, on April 21, 2025,
the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain accredited investors
named therein. Pursuant to the Securities Purchase Agreement, up to 10,000 shares of the Company’s Series D Preferred Stock shall
be purchased for an aggregate purchase price of up to $8 million in one or more closings (each a “Closing”). On April 22,
2025, pursuant to the Securities Purchase Agreement, the Company issued and sold, and the investors purchased, in a private placement
(the “Private Placement”): 6,250 shares of the Series D Preferred Stock for aggregate proceeds of approximately $5 million,
paid through the transfer of certain Transfer Shares (as defined in the Securities Purchase Agreement) in lieu of cash. The
date of the first closing is referred to as the “First Closing Date.” Each additional closing of the Private Placement is
at the option of the investors upon notice to the Company and subject to satisfaction of customary closing conditions. On April 22, 2025,
the Company filed the Certificate of Design