Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 77

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 77
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 significantly higher tariffs applicable to imports from many countries, plus tariffs on
specific goods of between 7.5% and 100%, which have resulted in other countries imposing additional tariffs on imports from the
U.S., and actions by the U.S. are likely to continue to result in retaliatory responses. On April 9, 2025, the U.S. announced a
temporary pause on its tariffs applicable to many countries but has stated that it might continue to broadly impose tariffs, which
could lead to corresponding punitive actions by the countries with which the U.S. trades. President Trump also has said that he was
considering tariffs of 25% or more on pharmaceutical and other products. He indicated that such tariff rates might increase
substantially over the course of the year to allow manufacturers a phase-in period to allow potential on-shoring of manufacturing.
It is unclear at this time whether and to what extent such tariffs will take place, or how affected countries may react.
Historically, tariffs have led to increased trade and political tensions. In response to tariffs, other countries have implemented
retaliatory tariffs on U.S. goods. Political tensions as a result of trade policies could reduce trade volume, investment,
technological exchange and other economic activities between major international economies, resulting in a material adverse effect
on global economic conditions and the stability of global financial markets. Any further trade restrictions, retaliatory trade
measures and additional tariffs could result in higher input costs to our investigational candidates. We may not be able to fully
mitigate the impact of these increased costs, which could adversely impact our business. While tariffs and other trade measures
imposed by other countries on U.S. goods have not yet had a significant impact on our business or results of operations, we cannot
predict further developments, and such existing or future tariffs could have a material adverse effect on our results of operations,
financial position and cash flows.

41

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

On January 6, 2025, 625 Series A Preferred Warrants were exercised
into 625 shares of Series A Preferred Stock for gross cash proceeds of $500,000.

On January 6, 2025, the Company issued warrants
to purchase an aggregate of 163,853 shares of Common Stock to a certain investor affiliated with each other to induce investors to exercise
their Series A Preferred Warrants for cash (the “January 2025 Common Warrants”). The January