Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 70

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 70
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 31, 2025 primarily reflected a net loss of $5.1 million, adjusted for the reconciliation of
non-cash items such as depreciation expense of $0.1 million, stock-based compensation of $0.3 million, inducement expense of $0.2 million,
and amortization of right-of-use asset of $0.2 million, and changes in operating asset and liabilities primarily consisting of an increase
in prepaid expenses and other current assets of $0.3 million, an increase in accounts payable of $0.7 million, a decrease in accrued liabilities
of $0.3 million, and a decrease in operating lease liabilities of $0.2 million.

Net cash used in operating
activities for the three months ended March 31, 2024 primarily reflected a net loss of $2.3 million, adjusted for the reconciliation of
non-cash items such as a gain of settlement of liabilities with vendors of $0.1 million, depreciation expense of $0.1 million, stock-based
compensation of $0.1 million, amortization of right-of-use asset of $0.2 million and a gain on revaluation of earnout liability and the
preferred stock warrant liability of $2.1 million, and changes in operating asset and liabilities primarily consisting of an increase
in prepaid expenses and other current assets of $0.5 million, a decrease in accounts payable of $0.3 million, an increase in accrued liabilities
of $0.1 million, and a decrease in operating lease liabilities of $0.2 million.

37

Net cash provided by financing activities

Net cash provided by financing activities
for the three months ended March 31, 2025 amounted to $6.3 million as compared to $7.2 million for the three months ended March 31, 2024.

During the three months ended
March 31, 2025, net cash provided by financing activities of $6.3 million was primarily attributable to the receipt of net proceeds of
$0.5 million from the exercise of Series A Preferred Warrants, net proceeds of $1.2 million from the sale of common stock under the ELOC,
proceeds of $0.7 million from the collection of stock subscriptions receivable from previous sales of common stock under the ELOC, and
net proceeds from sale of common stock and pre-funded warrants of $4.3 million. Offset by the cash redemption of Series C Preferred Stock
of $0