Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 304

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 304
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Going concern – The accompanying
consolidated 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 research and development (“R&D”) activities
and meet its obligations on a timely basis. As of December 31, 2024, the Company reported $3.3 million of cash and cash equivalents, with
an accumulated deficit of $70.9 million. On February 5, 2025, we entered into a securities purchase agreement (the “SPA”),
with participation from a member of the Company’s board of directors and a single institutional investor, for the purchase and sale
of (i) 2,551,020 shares of our common stock or common stock equivalents in lieu thereof; and (ii) common warrants to purchase up to 2,551,020
shares of common stock, at a combined public offering price of $1.96 per share and Warrant. In connection with this offering, we received
net proceeds of approximately $4.5 million. Additionally, since December 31, 2024, we received net proceeds from the exercise of the remaining
Series A Preferred Warrants, the collection of subscriptions receivable and ELOC fundings of approximately $2.5 million. Additional funds
are necessary to maintain current operations and to continue R&D activities. However, there can be no assurance that sufficient funding
will be available to allow the Company to successfully continue its R&D activities and planned regulatory filings with the FDA. If
the Company is unable to obtain the necessary funds, significant reductions in spending and the delay or cancellation of planned activities
may be necessary. These actions would have a material adverse effect on the Company’s business, results of operations, and prospects.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date
these financial statements are issued. These financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

Risks and uncertainties – The Company
is subject to all of the risks inherent in an early-stage biotechnology company. These risks include, but are not limited to, limited
management resources, intense competition, and dependence upon the availability of cash to