CERo Therapeutics Holdings Reports Financial Changes Following Merger, Seeks Additional Capital

As of September 30, 2024, CERo Therapeutics Holdings, Inc. (formerly Phoenix Biotech Acquisition Corp.) reported significant financial changes following its merger with CERo Therapeutics, Inc. on February 14, 2024. The company is focused on developing a therapeutic platform to genetically engineer human immune cells for cancer treatment.

The company’s total assets increased to $6.5 million from $5.1 million at the end of 2023, while total current assets rose to $3.7 million from $2.0 million. However, total current liabilities surged to $9.4 million from $3.5 million, leading to a total liabilities increase to $10.2 million from $5.1 million. This resulted in a notable reduction in stockholders’ deficit, which improved to $(3.7 million) from $(42.1 million) at the end of the previous fiscal year.

For the three months ended September 30, 2024, the company reported total operating expenses of $4.4 million, a substantial increase from $1.5 million in the same period of 2023. The net loss for this quarter was $(4.2 million), compared to $(1.3 million) in the prior year, reflecting a worsening of $(2.9 million). General and administrative expenses accounted for $2.6 million, up from $0.3 million, primarily due to increased operational costs and hiring of senior management. Research and development expenses also rose to $1.8 million from $1.3 million, driven by preparations for clinical trials and regulatory compliance.

For the nine months ended September 30, 2024, total operating expenses reached $14.1 million, compared to $6.6 million in the same period of 2023, with a net loss of $(9.0 million) versus $(6.0 million) previously. The increase in expenses was attributed to heightened R&D activities, including the filing of an Investigational New Drug (IND) application for CER-1236, which faced a clinical hold from the FDA due to insufficient data.

The company raised approximately $12.2 million in financing activities during the nine months ended September 30, 2024, a significant increase from $0.6 million in the same period of 2023. This included proceeds from the issuance of Series A, B, and C Preferred Stock, as well as common stock sales under an equity line of credit.

As of September 30, 2024, CERo Therapeutics had $3.4 million in cash, restricted cash, and cash equivalents, with an accumulated deficit of $71.6 million. The company is actively seeking additional capital to fund its ongoing R&D activities and meet operational obligations, with no revenue generated from product sales expected in the near future.