Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2448

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 2448
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”), and such transaction, the
“Business Combination” or “Merger”.

The Company is an innovative
immunotherapy company advancing the development of next generation engineered T cell therapeutics for the treatment of cancer. The Company’s
proprietary approach to T cell engineering, which enables it to integrate certain desirable characteristics of both innate and adaptive
immunity into a single therapeutic construct, is designed to engage the body’s full immune repertoire to achieve optimized cancer
therapy. The Company has not yet begun clinical development or product commercialization. The Company’s efforts will focus on continued
product development, including clinical development, to support regulatory approval to commercialize and subsequent product commercialization.

In November 2024, the U.S.
Food and Drug Administration (“FDA”) cleared the Company’s Investigational New Drug Application for Phase 1 clinical
trials of its lead compound, CER-1236, in acute myelogenous leukemia.

Going concern – The accompanying
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 December 31, 2024, the Company reported $3.3 million of cash and cash equivalents, with
an accumulated deficit of $70.9 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 $4.5 million. Additionally, since December 31, 2024, we received net proceeds from the exercise of the remaining
Series A Preferred Warrants, the collection of subscriptions receivable and ELOC fundings of approximately $2.5 million. Additional funds
are necessary to maintain current operations and to continue R&D activities. However, there can be no assurance that sufficient funding