Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 95

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 95
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 recording of a gain on settlement of vendor liabilities of $589,000 during the nine months ended September 30, 2024
compared to $0 during the nine months ended September 30, 2025, (3) the recording of stock-based inducement expense of $864,000 during
the nine months ended September 30, 2025 as compared to $0 during the nine months ended September 30, 2024, and (4) the recording of a
$500,000 write off of deferred offering costs during the nine months ended September 30, 2025 as compared to $0 during the nine months
ended September 30, 2024. These decreases in other income and increases in other expenses, net were offset by the recording of other expense
of $631,000 during the nine months ended September 30, 2024 related to registration rights penalties recorded compared to $0 during the
nine months ended September 30, 2025, and an increase in interest income, net of $43,000.

Net loss and net loss attributable to common
stockholders

For the nine months ended September 30, 2025 and 2024, net loss amounted
to $15,380,000 and $8,976,000, respectively, which represents an increase in net loss of $6,403,000, or 71.3%. During the nine months
ended September 30, 2025, in connection with our Series A, Series B and Series C preferred stock conversions and the redemption of Series
C Preferred Stock, we recorded deemed dividends of $31,614,000, in connection with the triggering of a down round provision in connection
with our Series D Preferred Stock, we recorded a deemed dividend of $6,650,000, and in connection with the adjustment in the exercise
price of Series C Common Warrants, we recorded deemed dividends of $84,000. Accordingly, for the nine months ended September 30, 2025
and 2024, net loss attributable to common stockholders amounted to $47,078,000, or $(72.94) per common share, and $8,976,000, or approximately
$(587.00) per common share, respectively.

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.