Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 175

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 175
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 Less: accumulated depreciation 
     (2,241,139) 
     (2,026,070)
  
    Property and equipment, net 
    $313,452  
    $528,521 

Successor depreciation expense
for the three months ended September 30, 2025 and 2024 was $69,354 and $113,855, and for the nine months ended September 30, 2025 and
for period from February 14, 2024 through September 30, 2024 Successor depreciation expense was $215,069 and $304,446, respectively. Predecessor
depreciation expense for the period January 1, 2024 through February 13, 2024 was $37,356.

13

NOTE 6 – ACCRUED LIABILITIES

Accrued liabilities consisted of the following as of September
30, 2025 and December 31, 2024:

    September 30,  
    December 31, 

    2025  
    2024 

    (Successor)  
    (Successor) 
  
    Employee-related liabilities 
    $4,415  
    $244,302 
  
    Accrued franchise taxes 
     78,448  
     78,448 
  
    Accrued legal expenses 
     40,000  
     593,825 
  
    Penalty for late S-1 filing and effectiveness 
     55,000  
     55,000 
  
    Accrued clinical expenses 
     87,099  
     - 
  
    Accrued consulting, professional services and other 
     75,729  
     941,600 

    $340,691  
    $1,913,175 

NOTE 7 – LEASES

As of September 30, 2025
and December 31, 2024, the Company holds a five-year lease for laboratory and office space. The lease has escalating contractual rent
and variable rent components and the Company elected to separate the contractual and variable elements for valuing the operating lease
liability and right-to-use asset. The lease does not have any options for extension or expansion. The Company recorded the following lease
costs:

    For the three months ended 
September 30,  
    For the nine months ended September 30,  
    For the