Cero Therapeutics Reports $30.1 Million Net Loss and Progress in Clinical Trials

Cero Therapeutics Holdings, Inc. reported a net loss of $30.1 million for the quarter ending June 30, 2025, a significant increase from a loss of $2.4 million in the same period last year. The company's total operating expenses for the quarter were approximately $4.7 million, down from $5.1 million in the previous year, primarily due to reduced general and administrative costs. Research and development expenses slightly increased to $2.8 million from $2.7 million, reflecting ongoing clinical trial activities for its lead compound, CER-1236, which is currently in Phase 1/1b trials for acute myeloid leukemia (AML).

In terms of financial position, Cero reported total assets of $6.2 million as of June 30, 2025, a slight decrease from $6.2 million at the end of 2024. The company’s cash and cash equivalents stood at approximately $3.3 million, down from $3.3 million at the end of the previous fiscal year. The accumulated deficit increased to $81.4 million, reflecting the ongoing costs associated with research and development and operational expenses. The company has not generated any revenue and does not expect to do so in the near future, focusing instead on advancing its clinical programs.

Cero has made strategic moves to bolster its financial position, including the issuance of Series D Preferred Stock, which raised approximately $2.2 million during the first half of 2025. The company also completed a public offering in February 2025, generating net proceeds of about $4.2 million. These efforts are part of a broader strategy to secure additional funding necessary for ongoing research and development activities. The company has entered into equity line agreements to facilitate future capital raises, although it acknowledges the uncertainty surrounding the availability of sufficient funding.

Operationally, Cero has made progress in its clinical trials, with the FDA granting orphan drug designation for CER-1236 in July 2025. The company is actively pursuing additional orphan drug designations for other product candidates. However, it faces challenges, including the need to maintain compliance with Nasdaq listing requirements and the potential impact of regulatory changes on its business model. The company has identified material weaknesses in its internal controls, which it is working to address through enhanced financial reporting systems and the recruitment of qualified personnel.

Looking ahead, Cero Therapeutics remains focused on advancing its clinical programs while navigating the complexities of funding and regulatory compliance. The company anticipates that its research and development expenses will increase significantly as it continues to develop its product candidates. However, it also recognizes the inherent risks and uncertainties associated with biotechnology development, including the potential for delays in clinical trials and the need for substantial additional capital to support its operations.