CERo Therapeutics(CERO) - 2025 Q2 - Quarterly Report

Financial Position - As of June 30, 2025, the company reported approximately $3.2 million in cash and cash equivalents, with an accumulated deficit of approximately $81.4 million [264]. - As of June 30, 2025, the company had approximately $3.2 million in cash and cash equivalents, which is insufficient to fund operations for the next 12 months [301]. - The company anticipates needing substantial additional funding for its continuing operations due to the lack of generated revenue [301]. Revenue and Sales - The company has not recognized any revenue from product sales and does not expect to generate revenue in the foreseeable future [278]. Capital Raising Activities - The company raised approximately $3.1 million from its equity line of credit and an additional $4.3 million from a public offering that closed on February 7, 2025 [276]. - On April 21, 2025, the company entered into a Securities Purchase Agreement to issue up to 10,000 shares of Series D Preferred Stock for an aggregate purchase price of up to $8 million [266]. - The company received net proceeds of approximately $4.2 million from a securities purchase agreement on February 5, 2025 [265]. - The company sold an additional 938 shares of Series D Preferred Stock for gross cash proceeds of $750,400 on June 5, 2025 [271]. - During the six months ended June 30, 2025, the company received net proceeds of approximately $4.2 million from a public offering [301]. - The company has arranged two equity lines of credit, one for the sale of up to 25,000,000 newly issued shares of common stock and another for the purchase of up to $17.5 million of common stock [301]. Stock and Compliance - The company completed a reverse stock split on January 8, 2025, converting each 100 shares of Common Stock into 1 share [269]. - The company regained compliance with Nasdaq listing requirements after raising sufficient capital and meeting the $2.5 million minimum stockholders' equity requirement [276]. - The company issued 6,250 shares of Series D Preferred Stock in exchange for 1,000,279 shares of Stella Series D Preferred Stock, valued at $500,000 [267]. Expenses - Research and development expenses for Q2 2025 were $2,754,000, an increase of $40,000 or 1.5% compared to Q2 2024 [287]. - General and administrative expenses decreased to $1,970,000 in Q2 2025, down $464,000 or 19.1% from Q2 2024 [286]. - Total operating expenses for Q2 2025 were $4,724,000, reflecting a decrease of $424,000 or 8.2% compared to Q2 2024 [286]. - Research and development expenses for the six months ended June 30, 2025 were $5,662,000, an increase of $1,279,000 or 29.2% compared to the same period in 2024 [294]. - General and administrative expenses for the six months ended June 30, 2025 were $4,013,000, a decrease of $1,305,000 or 24.5% from the same period in 2024 [296]. - The company anticipates significant increases in R&D expenses in the future due to increased headcount and contracted services for clinical development [288]. - The company expects significant increases in expenses related to ongoing research, preclinical, and clinical development to support marketing approval for its product candidates [300]. - The company recorded stock-based inducement expense of $864,000 during the six months ended June 30, 2025, compared to $0 in the same period in 2024 [305]. Losses - Net loss for Q2 2025 was $5,417,000, an increase of $2,968,000 or 121.2% from Q2 2024 [291]. - Net loss attributable to common stockholders for Q2 2025 was $30,117,000, compared to $2,449,000 in Q2 2024, representing a 1,130.0% increase [291]. - For the six months ended June 30, 2025, the net loss increased to $10,523,000, representing a 121.6% increase compared to a net loss of $4,748,000 for the same period in 2024 [298]. - The company recorded deemed dividends of $24,700,000 related to Series A, B, and C preferred stock conversions in Q2 2025 [291]. - The company recorded deemed dividends of $24,965,000 related to preferred stock conversions during the six months ended June 30, 2025 [298]. - Other expenses for Q2 2025 were $693,000, a negative change of $3,393,000 compared to other income of $2,700,000 in Q2 2024 [290]. Cash Flow - Net cash used in operating activities for the six months ended June 30, 2025 was $(9,068,702), compared to $(8,617,285) for the same period in 2024, reflecting a decrease of $451,417 [304]. - Net cash provided by financing activities for the six months ended June 30, 2025 was $9,045,000, a decrease from $9,749,000 in the same period in 2024 [307].