Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 80

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 80
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Stock subject to forfeiture if the applicable conditions to transferability thereof are not satisfied: (i) 600 shares of Common Stock
(giving retroactive effect to the Reverse Stock Splits), which will be fully vested upon the achievement of certain adjusted stock price-based
earnout targets or upon a qualifying transaction (ii) 438 shares of Common Stock (giving retroactive effect to the Reverse Stock Splits),
pursuant to a Letter Agreement, dated as of February 14, 2024 which were fully vested at Closing of the Merger and which were issued as
an offset to the Sponsor Share Forfeiture Agreement, and (iii) 500 shares of Common Stock (giving retroactive effect to the Reverse Stock
Splits), which were fully vested upon the June 28, 2024 achievement of certain regulatory milestone-based earnout targets.

As consideration for the
Merger, the Company issued to Predecessor stockholders an aggregate of 4,038 shares of Common Stock, including 1,100 Earnout Shares and
187 shares issuable upon exercise of rollover options or warrants (giving retroactive effect to the Reverse Stock Splits).

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 September 30, 2025, the Company reported approximately
$1.9 million of cash and cash equivalents, with an accumulated deficit of approximately $86.3 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) 127,551 shares of Common Stock or Common Stock equivalents in lieu thereof; and (ii) February 2025 Common Warrants to
purchase up to 127,551 shares of Common Stock at an exercise price of $39.20. In connection with such offering, we received net proceeds
of approximately $4.2 million. Additionally, during the nine months ended September 30, 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