Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 234

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 234
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 in 2023 relative
to 2022. Manufacturing slowed in 2023 relative to 2022, causing contract manufacturing expense to decline $0.70 million in 2023 versus
2022. Partially offsetting these declines, we received $0.18 million less in expense reimbursements from a collaboration partner in 2023
compared to 2022.

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We anticipate that its R&D
expenses will significantly increase in the future as we increase headcount 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.

Interest and Other Income, Net

Interest and other income,
net increased $0.24 million, from $0.14 million in the year ended December 31, 2022 to $0.39 million in the year ended December 31, 2023.
The change was primarily due to a $0.25 million increase in the gain on the revaluation of the warrant liability from $0.04 million to
$0.29 million as of December 31, 2022, and 2023, respectively. This decrease was offset by a $0.01 million decrease in net interest income
from $0.10 to $0.09 million in the years ended December 31, 2022, and 2023, respectively.

Liquidity and Capital Resources

Capital Requirements

Predecessor and the Company
have not generated any revenue from any source and the Company does not expect to generate revenue for at least the next few years. If
the Company fails to complete the timely development of, or fails to obtain regulatory approval for, its product candidates, the ability
of the Company to generate future revenue will be adversely affected. The Company does not know when, or if, it will generate any revenue
from its product candidates, and does not expect to generate revenue unless and until the Company obtains regulatory approval and commercialization
of its product candidates.

The Company expects its
expenses to increase significantly in connection with its ongoing activities, particularly as it continues and expands research, preclinical
development, and clinical development to support marketing approval for its product candidates. In addition, if the Company obtains approval
for any of its product candidates, the Company expects to incur significant commercialization expenses related to sales, marketing, manufacturing
and distribution. Furthermore, the Company expects to incur additional costs associated with operating as a public company.