Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2061

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 2061
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 shares
of Common Stock (giving retroactive effect to the Reverse Stock Split), which were fully vested upon the June 28, 2024 achievement of
certain regulatory milestone-based earnout targets.

As consideration for the
Merger, the Company issued to Predecessor stockholders an aggregate of 84,483 shares of Common Stock, including 22,000 Earnout Shares
and 3,733 shares issuable upon exercise of rollover options or warrants (giving retroactive effect to the Reverse Stock Split).

Going concern

The accompanying 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 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,
the Company entered into a securities purchase agreement (the “SPA”), with participation from a member of the Board and a
single institutional investor, for the purchase and sale of (i) 2,551,020 shares of Common Stock or Common Stock equivalents in lieu thereof;
and (ii) February 2025 Common Warrants to purchase up to 2,551,020 shares of Common Stock at an exercise price of $1.96. In connection
with such offering, the Company received net proceeds of approximately $4.5 million. Additionally, since December 31, 2024, the Company
received net proceeds from the exercise of the remaining Series A Warrants, the collection of subscriptions receivable and equity line
of credit 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 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 concern within one year from the date these