Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 227

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 227
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, preclinical and clinical development, and regulatory filing for product
candidates. R&D expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in R&D
are capitalized until the goods or services are received. Costs incurred in obtaining technology licenses through asset acquisitions,
if incurred, will be charged to R&D expense if the licensed technology has not reached technological feasibility and has no alternative
future use. R&D expenses include or could include:

| ● | employee-related expenses,                                                                                                           
 including salaries, bonuses, benefits, stock-based compensation and other related costs for those employees involved in R&D efforts; |

| ● | external R&D expenses                                                                                                                 
 incurred under agreements with pre-clinical research organizations, clinical research organizations, investigative sites, centralized 
 clinical laboratories, and consultants to conduct preclinical and clinical studies;                                                   |

| ● | costs related to manufacturing                                                                                                     
 material for preclinical studies and clinical trials, including fees paid to contract development and manufacturing organizations; |

| ● | product-liability insurance          
 for clinical development product(s); |

| ● | laboratory supplies and 
 research materials;     |

| ● | software and systems related 
 to R&D activities;           |

| ● | costs related to regulatory 
 filing and compliance; and  |

| ● | facilities, depreciation                                                                                                      
 and other allocated expenses, which include direct and allocated expenses for rent, maintenance of facilities, and equipment. |

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Product candidates in later
stages of development generally have higher development costs than those in earlier stages of clinical development, primarily due to
the increased size and duration of later-stage clinical trials. The Company plans to substantially increase its R&D expenses for
the foreseeable future as it continues the development of its product candidates through clinical development. The Company cannot determine
with certainty the timing of initiation, the duration or the costs of current or future preclinical studies and clinical trials required
for regulatory approval due to the inherently unpredictable nature of preclinical and clinical development. Clinical and preclinical
development timelines, the probability of success and development costs can differ materially from expectations. The Company anticipates
that it will make determinations as to which product candidates to pursue and how much funding to direct to each product candidate on
an ongoing basis in response to the results of ongoing and future preclinical studies and clinical trials, regulatory developments and
ongoing assessments as to each product candidate’s commercial potential. The Company will need to, and plans to, raise substantial
additional