Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 88

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 88
---
 and a decrease in operating lease liabilities of $450,000.

Net cash provided by financing activities

Net cash provided by financing
activities for the six months ended June 30, 2025 amounted to $9,045,000 as compared to $9,749,000 for the six months ended June 30, 2024.

During the six months ended
June 30, 2025, net cash provided by financing activities of $9,045,000 was primarily attributable to the receipt of net proceeds of $500,000
from the exercise of Series A Preferred Warrants, net proceeds of $2,426,000 from the sale of common stock under the ELOC, net proceeds
of $2,240,000 from the sale of Series D Preferred Stock, and net proceeds from sale of common stock and pre-funded warrants of $4,273,000,
offset by the cash redemption of Series C Preferred Stock of $395,000.

During the six months ended
June 30, 2024, net cash provided by financing activities of $9,749,000 was primarily attributable to the receipt of net proceeds of $6,758,000
from the sale of Series A Preferred Stock, $408,000 from short-term borrowings, net proceeds of $500,000 from the sale of Series B Preferred
Stock, and net proceeds of $2,238,000 from the sale of common stock under the ELOC, offset by the repayment of short-term borrowings of
$149,000.

<div align='center'>38</div>

Critical Accounting Estimates

Investment in equity securities -The Company’s investment in equity securities consists of Series D Preferred Stock of Stella Diagnostics, Inc. Investments
in equity securities are initially measured at cost. Cost is based upon either the cost of the investment or the estimated market value
of the investment at the time it was acquired, whichever can be more clearly determined. The Company has elected the measurement alternative
for equity securities without readily determinable fair values. Under this alternative, if the Company identifies an observable price
change in an orderly transaction for an identical or similar investment of the same issuer, the Company measures the equity security at
fair value as of the date that the observable transaction occurred. Any adjustments resulting from observable price changes are recognized
in earnings. The Company monitors these investments for changes in observable prices from orderly transactions and assesses them for impairment.
If an equity security is deemed to be impaired, an impairment loss is recognized in earnings