Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 282

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 2
Chunk 282
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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. As of June 30, 2025, the Company had approximately $3.2 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 as of June
30, 2025 will not fund its operations and capital requirements for 12 months after the filing of these unaudited condensed financial statements
for the period ended June 30, 2025. 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 $17.5 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) 127,551 shares of our common stock or common stock equivalents
in lieu thereof; and (ii) February 2025 Common Warrants to purchase up to 127,551 shares of common stock, at a combined public offering
price of $39.20 per share and warrant. In connection with this offering, the Company received net proceeds of approximately $4.2 million.
Additionally, during the six months ended June 30, 2025, the Company received net proceeds from the exercise of the remaining Series A
Preferred Warrants, the collection of subscriptions receivable and ELOC fundings of approximately $2.9 million. Furthermore, during the
six months ended June 30, 2025, we received net proceeds from the sales of Series D Preferred Stock of $2.2 million. Any estimate as to
how long the Company expects the net proceeds from the ELOC and Series D Preferred Stock funding may fund the Company’s operations
is based