Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 94

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 94
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 development costs of $81,000.

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.

General and Administrative Expenses

General and administrative expenses were $5,989,000 for the nine months
ended September 30, 2025 as compared to $7,946,000 for the nine months ended September 30, 2024, reflecting a decrease of $1,957,000.
The decrease during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, was primarily due
to a decrease of $1,750,000 in underwriting fees from the PBAX initial public offering, which were incurred upon the consummation of the
business combination in February 2024, a decrease in professional fees of $343,000 attributable to a decrease in legal fees of $377,000
and consulting fees of $415,000, offset by an increase in accounting fees of $399,000, and an increase in director fees of $50,000. Additionally,
during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, we had a decrease in outside
services of $299,000 primarily due to a decrease in recruitment fees, an increase in other general and administrative expenses of $332,000
primarily attributable to transfer agent and proxy fees, and an increase in public communications of $103,000.

40

Other Income (Expense), Net

Other expenses, net was $(1,343,000)
for the nine months ended September 30, 2025 as compared to other income of $5,126,000 for the nine months ended September 30, 2024, reflecting
a negative change in other income, net of $6,469,000. The negative change was primarily due to (1) the recording of a $4,870,000 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 nine months ended September 30, 2024 as compared to $0 during the nine months ended September
30, 2025, (2) the