Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 117

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 117
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 or
other arrangements or declaring dividends. If the Company raises additional funds through collaborations, strategic alliances or marketing,
distribution or licensing arrangements with third parties, it may be required to relinquish valuable rights to its technologies, future
revenue streams, research programs or product candidates or to grant licenses on terms that may not be favorable to the Company. If the
Company is unable to raise capital when needed or on acceptable terms, the Company could be forced to delay, reduce or eliminate its R&D
programs or future commercialization efforts.

Cash Flows

    For the Three Months Ended March 31,  

    2024  

    2025
(Successor)  
    (Pro forma,  Predecessor and Successor)  
    Difference 

    Net cash used in operating activities 
    $(4,445,667) 
    $(5,080,058) 
    $634,391 
  
    Net cash provided by financing activities: 
     6,322,144  
     7,157,766  
     (835,622)
  
    Net increase in cash and cash equivalents 
    $1,876,477  
    $2,077,708  
    $(201,231)

Net cash used in operating activities

Net cash used in operating
activities for the three months ended March 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.