Cero Therapeutics Reports $5.1 Million Net Loss and Increased R&D Expenses for Q1 2025

Cero Therapeutics Holdings, Inc. reported a net loss of $5.1 million for the quarter ending March 31, 2025, a significant increase from the $2.3 million loss recorded in the same period the previous year. The company's total operating expenses rose to $4.95 million, up 8.7% from $4.55 million in the prior year, primarily driven by a 74.3% increase in research and development (R&D) expenses, which reached $2.91 million. This increase reflects the company's ongoing commitment to advancing its clinical trials, particularly for its lead compound, CER-1236, which received FDA clearance for Phase 1 trials in November 2024.

In terms of financial position, Cero Therapeutics reported total assets of $7.99 million as of March 31, 2025, compared to $6.21 million at the end of 2024. The company’s cash and cash equivalents increased to $5.20 million from $3.33 million, bolstered by net proceeds of approximately $4.3 million from a public offering completed in February 2025. However, the company also reported a substantial accumulated deficit of $76 million, indicating ongoing challenges in achieving profitability.

Strategically, Cero Therapeutics has been active in securing funding to support its operations. The company entered into a securities purchase agreement in February 2025, which involved the sale of 2,551,020 shares of common stock and warrants, generating net proceeds of about $4.3 million. Additionally, in April 2025, the company completed a private placement of 6,250 shares of Series D Preferred Stock for approximately $5 million. These efforts are part of a broader strategy to ensure sufficient capital for R&D and operational expenses, especially as the company anticipates increased costs associated with clinical trials and public company compliance.

Operationally, Cero Therapeutics has not yet generated revenue, as it remains focused on the development of its product candidates. The company has not disclosed specific customer counts or user statistics, but it is actively pursuing clinical trials to advance its product pipeline. As of March 31, 2025, the company had 7,722,072 shares of common stock outstanding, reflecting its capital-raising activities. Looking ahead, Cero Therapeutics faces the challenge of securing additional funding to sustain its operations and continue its R&D efforts, with management expressing uncertainty about the timing and availability of future financing.