Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113118
Chunk: 105

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 105
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 by financing activities

Net cash provided by financing
activities for the nine months ended September 30, 2025 amounted to $10,469,000 as compared to $12,241,000 for the nine months ended
September 30, 2024.

During the nine months ended
September 30, 2025, net cash provided by financing activities of $10,469,000 was primarily attributable to the receipt of net proceeds
of $500,000 from the exercise of Series A Preferred Warrants, net proceeds of $3,704,000 from the sale of common stock under the ELOC
and collection of stock subscription receivables, net proceeds of $2,561,000 from the sale of Series D Preferred Stock, and net proceeds
from sale of common stock and pre-funded warrants of $4,273,000, offset by the cash redemption of Series C Preferred Stock of $395,000
and the payment of offering costs of $174,000.

During the nine months ended
September 30, 2024, net cash provided by financing activities of $12,241,000 was primarily attributable to the receipt of net proceeds
of $6,758,000 from the sale of Series A Preferred Stock, $408,000 from short-term borrowings, net proceeds of $500,000 from the sale
of Series B Preferred Stock, net proceeds of $704,000 from the sale of Series C Preferred Stock and net proceeds of $4,139,000 from the
sale of common stock under the ELOC, offset by the repayment of short-term borrowings of $300,000.

Critical Accounting Estimates

Investment in equity securities - The Company’s investment in equity securities consists of Series D Preferred Stock of Stella Diagnostics, Inc.
Investments in equity securities are initially measured at cost. Cost is based upon either the cost of the investment or the estimated
market value of the investment at the time it was acquired, whichever can be more clearly determined. The Company has elected the measurement
alternative for equity securities without readily determinable fair values. Under this alternative, if the Company identifies an observable
price change in an orderly transaction for an identical or similar investment of the same issuer, the Company measures the equity security
at fair value as of the date that the observable transaction occurred. Any adjustments resulting from observable price changes are recognized
in earnings. The Company monitors these investments for changes in observable prices from orderly transactions and assesses them for
impairment. If an