Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2642

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2642
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 related to increased R&D activity as the Company prepared and filed the IND for CER-1236,
prepared for the clinical trial initiation, and conducted additional experiments in response to the FDA questions related to the IND. Clinical expenses increased $0.2 million, and scientific consulting
expenses increased $1.2 million in the year ended December 31, 2024, due to activities related to the preparation of the IND and responses
to questions from the FDA, and preparation for the anticipated clinical trial for CER-1236. Additional studies required to address FDA
questions increased preclinical study costs by $0.3 million.

The Company anticipates that
its R&D expenses will significantly increase in the future as the Company increases headcount, compensation expense, and contracted
services for preclinical and clinical development of its product candidates, as well as for manufacturing of clinical product to be used
in clinical development.  

Other Income, Net

Other income was $7.9 million
for the year ended December 31, 2024, compared to $0.4 million for the year ended December 31, 2023, reflecting an increase of $7.5 million.
The increase in 2024 as compared to 2023 was primarily due to the $4.8 million positive change in value of the Company’s earnout
liability and the $0.4 million gain recorded for the change in value of the Predecessor’s preferred stock warrant liability in the
year ended December 31, 2024. Additionally, settlement of vendor liabilities in 2024 resulted in a $3.3 million increase in other income
in 2024. This other income was offset by an increase in other expenses attributable to an increase in registration and other penalties
of $0.6 million and a decrease in interest income of $0.1 million.

Net loss and net loss attributable to common
stockholders

For the years ended December
31, 2024 and 2023, net loss amounted to $8.3 million and $7.3 million, respectively, an increase of $1.0 million, or 13.9%. During 2024,
in connection with our Series A and Series B preferred stock conversions and the repricing of Series A Warrants, we recorded a deemed
dividend of $2.8 million. Accordingly, for the years ended December 31, 2024 and 2023, net loss attributable to common stockholders amounted
to