Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 272

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 272
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 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.

106

The Company, therefore, anticipates that substantial additional funding
will be needed in connection with its continuing operations. At December 31, 2024, the Company had $3.3 million in cash and cash
equivalents. The Company intends to devote most of the available cash to the preclinical and clinical development of its product candidates
and public company compliance costs. Based on current business plans, the Company believes that the cash available at December 31, 2024
will not fund its operations and capital requirements for 12 months after the filing of the audited financial statements for the year
ended December 31, 2024. The Company has arranged two equity lines of credit, one providing for the sale of up to 25,000,000 newly issued
shares of Common Stock and the other providing for the purchase of up to $25 million of Common Stock on the satisfaction of certain conditions.
The Company has no guarantee that the conditions will be satisfied to require the purchase of all, or any additional amount, of the ELOC
funds. On February 5, 2025, the Company entered into the SPA, with participation from a member of the Company’s Board 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) February 2025 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, the Company received net proceeds of approximately $4.5 million. Additionally,
since December 31, 202