Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 213

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 213
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 February 2024, and a decrease in executive salaries and benefits of
$68,000. This decrease was offset by an increase in professional fees of $516,000 primarily due to an increase in auditing, accounting
and legal fees which were offset by a decrease in recruiting fees. The additional professional fees were all driven by the increased
expenses of operational compliance as a public company.

Other
Income (Expense), Net

Other expense was $(849,000)
for the six months ended June 30, 2025 as compared to other income of $4,952,000 for the six months ended June 30, 2024, reflecting a
negative change in other income, net of $5,801,000. The negative change was primarily due to (1) the recording of a $4,700,000 gain from
change in value of the Company’s earnout liability and a $320,000 gain recorded for the change in value of the Predecessor’s
preferred stock warrant liability during the six months ended June 30, 2024 as compared to $0 during the six months ended June 30, 2025,
(2) the recording of a gain on settlement of vendor liabilities of $589,000 during the six months ended June 30, 2024 compared to $0 during
the six months ended June 30, 2025, and (3) the recording of stock-based inducement expense of $864,000 during the six months ended June
30, 2025 as compared to $0 during the six months ended June 30, 2024. These decreases in other income, net were offset by the recording
of other expense of $631,000 during the six months ended June 30, 2024 related to registration rights penalties recorded compared to $0
during the six months ended June 30, 2025, and an increase in interest income, net of $41,000.

Net
loss and net loss attributable to common stockholders

For the six months ended
June 30, 2025 and 2024, net loss amounted to $10,523,000 and $4,748,000, respectively, which represents an increase in net loss of $5,775,000,
or 121.6%. During the six months ended June 30, 2025, in connection with our Series A, Series B and Series C preferred stock conversions,
and the redemption of Series C Preferred Stock,