Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 10

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 10
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decessor”), which was incorporated in Delaware on September 23, 2016, and based in South
San Francisco, California, entered into a Business Combination Agreement and Plan of Reorganization (the “BCA”) with PBCE
Merger Sub, Inc., a wholly-owned subsidiary of PBAX, and PBAX, with the surviving operating entity being named CERo Therapeutics Holdings,
Inc., and such transaction, the “Business Combination” or “Merger”.

Going concern –
The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a
going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company’s
ability to continue as a going concern is dependent on its ability to raise additional capital to fund its research and development (“R&D”)
activities and meet its obligations on a timely basis. As of March 31, 2025, the Company reported $5.1 million of cash and cash equivalents,
with an accumulated deficit of $76.0 million. On February 5, 2025, we entered into a securities purchase agreement (the “SPA”),
with participation from a member of the Company’s board of directors 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) 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, we received
net proceeds of approximately $4.2 million. Additionally, during the three months ended March 31, 2025, we received net proceeds from
the exercise of the remaining Series A Preferred Warrants, the collection of subscriptions receivable and ELOC fundings of approximately
$2.4 million. Additional funds are necessary to maintain current operations and to continue R&D activities. However, there can be
no assurance that sufficient funding will be available to allow the Company to successfully continue its R&D activities and planned
regulatory filings with the FDA. If the Company is unable to obtain the necessary funds, significant reductions in spending and the delay
or cancellation of planned activities may be necessary. These actions would have a material adverse effect on the Company’s business,
results of operations, and prospects. These conditions raise substantial doubt about the Company’s ability to continue as a going