Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 96

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 96
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 If
the Company fails to complete the timely development of, or fails to obtain regulatory approval 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.

The Company, therefore, anticipates
that substantial additional funding will be needed in connection with its continuing operations. As of September 30, 2025, the Company
had approximately $1.9 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 September 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 September 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