CERo Therapeutics(CERO) - 2025 Q1 - Quarterly Report

Financial Position - As of March 31, 2025, the company reported $5.1 million in cash and cash equivalents and an accumulated deficit of$76.0 million[227]. - The company anticipates needing to raise substantial additional capital in the future to support ongoing R&D activities[241]. - The company had $5.1 million in cash and cash equivalents as of March 31, 2025, and anticipates needing substantial additional funding for ongoing operations[256]. Fundraising Activities - The company raised approximately$4.3 million from a public offering on February 7, 2025, selling 2,551,020 shares of Common Stock at a price of $1.96 per share[231]. - On April 21, 2025, the company completed a private placement of 6,250 shares of Series D Preferred Stock for approximately$5 million[233]. - Net cash provided by financing activities for the three months ended March 31, 2025, was $6.3 million, down from$7.2 million in the same period in 2024[263]. Research and Development - The company plans to substantially increase its R&D expenses as it continues the development of its product candidates through clinical trials[241]. - For the three months ended March 31, 2025, research and development expenses increased to $2.9 million, up 74.3$1.7 million in the same period in 2024[248]. - The company expects significant increases in R&D expenses as it expands clinical development and operational compliance as a public company[250][255]. Revenue Expectations - The company has not recognized any revenue from product sales and does not expect to generate revenue in the foreseeable future[239]. - The company does not expect to generate revenue for at least the next few years, pending regulatory approval of its product candidates[254]. Operating Expenses - General and administrative expenses decreased to $2.0 million for the three months ended March 31, 2025, down 29.2$2.9 million in the same period in 2024[248]. - Total operating expenses for the three months ended March 31, 2025, were $4.95 million, an increase of 8.7$4.55 million in the same period in 2024[248]. - The net loss for the three months ended March 31, 2025, was $5.1 million, representing an increase of 122.0$2.3 million for the same period in 2024[253]. Stock and Compliance - The company executed a reverse stock split on January 8, 2025, converting every 100 shares of Common Stock into 1 share[230]. - The company received a notification from Nasdaq on May 7, 2025, stating that it had regained compliance with the Nasdaq continued listing standard[238]. Earnout and Stock-Based Compensation - The Company recognized an earnout liability of $4.9 million on the merger date due to the merger in February 2024[266]. - During the three months ended March 31, 2024, the Company recorded a gain from the change in fair value of the earnout liability of$1.8 million, included in other income (expenses), net[266]. - The Company uses a Black-Scholes option pricing model to estimate the fair value of stock-based awards, which involves management's best estimates and inherent uncertainties[267]. - Stock-based compensation expense is recognized on a straight-line basis over the requisite service period, typically the vesting period[267]. - The accounting for stock options granted to outside consultants is consistent with the accounting for stock-based payments to officers and directors, recognized as stock-based compensation expense over the vesting period[268].