Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 67

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 67
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 a $0.1 million increase in other income during the three months ended March 31, 2024.

Net loss and net loss attributable to common
stockholders

For the three months ended March 31, 2025 and 2024, net loss amounted
to $5.1 million and $2.3 million, respectively, which represents an increase in net loss of $2.8 million, or 122.0%. During the three
months ended March 31, 2025, in connection with our Series A and Series B preferred stock conversions, and the redemption of Series C
Preferred Stock, we recorded deemed dividends of $0.3 million, and in connection with the adjustment in the exercise price of Series C
Common Warrants, we recorded deemed dividends of $0.1 million. Accordingly, for the three months ended March 31, 2025 and 2024, net loss
attributable to common stockholders amounted to $5.5 million, or $(1.59) per common share, and $2.3 million, or $(16.30) per common share,
respectively.

35

Liquidity and Capital Resources

Capital Requirements

Predecessor and the
Company have not generated any revenue from any source and the Company does not expect to generate revenue for at least the next few
years. If the Company fails to complete the timely development of, or fails to obtain regulatory approval for, its product
candidates, the ability of the Company to generate future revenue will be adversely affected. The Company does not know when, or if,
it will generate any revenue from its product candidates, and does not expect to generate revenue unless and until the Company
obtains regulatory approval and commercialization of its product candidates.

The Company expects its expenses
to increase significantly in connection with its ongoing activities, particularly as it continues and expands research, preclinical development,
and clinical development to support marketing approval for its product candidates. In addition, if the Company obtains approval for any
of its product candidates, the Company expects to incur significant commercialization expenses related to sales, marketing, manufacturing
and distribution. Furthermore, the Company expects to incur additional costs associated with operating as a public company.

The Company, therefore, anticipates
that substantial additional funding will be needed in connection with its continuing operations. At March 31, 2025, the Company had $5.1 million
in cash and cash equivalents. The Company intends to devote most of the