Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 300

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 300
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 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
$4.2 million.

34

On April 21, 2025, the Company
entered into a Securities Purchase Agreement (the “Fourth Securities Purchase Agreement”) with certain accredited investors
named therein. Further, on April 22, 2025, the Company filed the Certificate of Designations of Rights and Preferences of the Series D
Preferred Stock (the “Series D Certificate of Designations”) for the purpose of designating and establishing the Company’s
Series D Preferred Stock. 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, the Company
issued 6,250 shares of its Series D preferred stock to investors in exchange for 1,000,279 shares of Series D preferred stock of Stella
Diagnostics. The transaction was completed in lieu of a cash payment. The value of Stella’s Series D Preferred Stock received was
determined to be $500,000 as of the transaction date, based on the subsequent sale of the 1,