Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 64

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 64
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 recruiting expenses. Other general and administrative expenses include professional fees for legal,
accounting and tax-related services, consulting fees, insurance costs, and investor relations fees.

The Company anticipates that
its general and administrative expenses will increase in the future as the Company increases headcount and contracted services for operational
support for expanded operations and infrastructure. The Company also anticipates that general and administrative expenses will increase
as a result of expenses for accounting, audit, legal and consulting services, as well as costs associated with maintaining compliance
with Nasdaq listing rules and SEC requirements, director and officer liability insurance, investor and public relations activities and
other expenses associated with operating as a public company.

Other Income (Expense), Net

Other income (expense), net
consists predominantly of interest income from interest bearing bank accounts, interest expense on payables, gains recorded on settlements
reached with vendors on payables, and the gain or loss on the revaluation of earnout and derivative liabilities, which represents the
change in fair value of earnout liabilities or outstanding warrants between periods.

Results of Operations for the Three Months
Ended March 31, 2025 and 2024

The results of operations
for the three months ended March 31, 2024 are pro forma as the period presented in the following table and discussion includes
the Predecessor for the period from January 1, 2024 through February 13, 2024 and the Company for the period from February 14, 2024 through
March 31, 2024. This pro forma period from January 1, 2024 to March 31, 2024 does not include the Merger transactions that occurred on-the-line.

    For the Three Months Ended March 31,  

    2024  

    2025 (Successor)  
    (Pro
forma)
(Predecessor and Successor)  
    Difference  
    Percentage Change 
  
    Operating expenses: 

    Research and development 
    $2,907,827  
    $1,668,207  
    $1,239,620  
     74.3%
  
    General and administrative 
     2,042,704  
     2,883,863  
     (841,159) 
     (29.2)%
  
    Total operating expenses 
     4,950,531  
     4,552,070  
     398