That sounds pretty grim. 3 months is a looong time to raise the first money. And the CEO should have started fundraising 3-6 months before running out of money.
It's reasonable for people with founder stock to decide to not pay themselves when money is tight, but not reasonable to stop paying employees (= without founder stock).
If you think the company has a future, insist on founder stock now. Otherwise, there are lots of other promising startups with adequate funding.