Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 234

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 234
---
 increase of $612,000. The increase was primarily attributable to an increase in clinical expenses of approximately
$202,000, an increase in scientific consulting fees of $210,000, and an increase in drug manufacturing costs of $278,000, offset by a
decrease in lab and other expenses of $19,000, a decrease in depreciation expense of $43,000 and a decrease in other research and development
expenses of $16,000. During the first quarter of 2025, we began clinical trials related to the IND for CER-1236.

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 $1,976,000 for the three months
ended September 30, 2025 as compared to $2,628,000 for the three months ended September 30, 2024, reflecting a decrease of approximately
$652,000. The decrease during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, was
primarily due to a decrease in professional fees of $869,000 related to a decrease in legal fees of $561,000 and a decrease in consulting
fees of $464,000, offset by an increase in accounting fees of $149,000 and an increase in director fees of $7,000. Additionally, during
the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, salaries and benefits increased by
$50,000, and other general and administrative expenses increased by $167,000 primarily attributable to an increase in transfer agent and
filing fees.

Other Income (Expense), Net

Other expenses was $(494,000)
for the three months ended September 30, 2025 as compared to other income of $174,000 for the three months ended September 30, 2024, reflecting
a negative change of $668,000. The negative change was primarily due to the recording of a $170,000 gain from change in value of the Company’s
earnout liability during the three months ended September 30, 2024 as compared to $0 during the three months ended September