Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2532

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 2532
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, may involve covenants limiting and restricting
the ability to take specific actions, such as incurring additional debt, making capital expenditures, entering into profit-sharing 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 Years Ended December 31,  

    2024  

    (Pro forma, Predecessor and Successor)  
    2023 (Predecessor)  
    Difference 

    Net cash used in operating activities 
    $(12,915,969) 
    $(5,789,987) 
    $(7,125,982)
  
    Net cash provided by financing activities: 
     13,727,634  
     571,678  
     13,155,956 
  
    Net increase (decrease) in cash and cash equivalents 
    $811,665  
    $(5,218,309) 
    $6,029,974 

107

Net cash used in operating activities

Net cash used in operating activities for the year ended December 31,
2024 primarily reflected a net loss of $8.3 million, adjusted for the reconciliation of non-cash items such as a gain on of the settlement
of vendor liabilities of $3.3 million, depreciation expense of $0.4 million, stock-based compensation of $0.9 million, amortization of
right-of-use asset of $0.7 million and a gain on revaluation of derivative and earnout liabilities of $5.2 million, and changes in operating
asset and liabilities primarily consisting of an increase in prepaid expenses and other current assets of $0.1 million, an increase in
accounts payable of $0.2 million, an increase in accrued liabilities of $2.3 million, and a decrease in operating lease liabilities of
$0.8 million.

Net cash used in operating activities for the year ended December 31,
2023 primarily reflected a net loss of $7.3 million, adjusted for the reconciliation