Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2639

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2639
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. The Company will need to, and plans to, raise substantial additional capital in the future. Future
R&D expenses may vary significantly between periods and from current expectations based on factors such as:

●expenses
                                            incurred to conduct preclinical studies required to advance product candidates into clinical
                                            trials;

●per
                                            patient clinical trial costs based on a number of factors, including number of patient clinical
                                            visits, clinical laboratory testing, and potential medical imaging;

●the
                                            number of clinical trials required for approval, the number of patients who enroll in each
                                            clinical trial, and the number and geographic locations of sites included in the clinical
                                            trials;

●the
                                            length of time required to screen and enroll eligible patients, screen-failure rate, or the
                                            discontinuation rates of enrolled patients;

●potential
                                            additional safety monitoring requested by regulatory agencies;

●the
                                            cost of insurance, including product liability insurance, in connection with clinical trials;
                                            and

●suspension
                                            or termination of clinical development activities by regulators or institutional review boards
                                            for various reasons, including regulatory noncompliance or a finding that the participants
                                            are being exposed to unacceptable health risks.

104

General and Administrative Expenses

General and administrative
expenses consist principally of salaries and related costs for personnel in executive and administrative functions, including stock-based
compensation, travel expenses and 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, Net

Other income, 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 years ended December
31, 2024 and 2023

The Results