Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 66

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 66
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 During the three months ended March 31, 2025, we began clinical
trials related to the IND for CER-1236. This increase was primarily offset by a decrease in lab expenses of approximately $0.3 million
and a decrease in research and development salaries and benefits of approximately $0.1 million.

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 $2.0 million for the three months ended March 31, 2025 as compared to $2.9 million for the three months ended March 31,
2024, reflecting a decrease of approximately $0.8 million. The decrease during the three months ended March 31, 2025 as compared to the
three months ended March 31, 2024, was primarily due to a decrease of $1.8 million in underwriting fees from the PBAX initial public offering,
which were incurred upon the consummation of the business combination in February 2024. This decrease was offset by an increase in executive
salaries and benefits of $0.4 million, an increase in professional fees of $0.5 million primarily to an increase in auditing, accounting
and legal fees which were offset by a decrease in recruiting fees. The additional professional fees were all driven by the increased expenses
of operational compliance as a public company.

Other Income (Expense), Net

Other expense was $(0.2)
million for the three months ended March 31, 2025 as compared to other income of $2.3 million for the three months ended March 31, 2024,
reflecting a decrease of $2.4 million. The decrease was primarily due to the recording of a $1.8 million gain from change in value of
the Company’s earnout liability and the $0.4 million gain recorded for the change in value of the Predecessor’s preferred
stock warrant liability during the three months ended March 31, 2024 as compared to $0 during the three months ended March 31, 2025, and
the recording of an inducement expense during the three months ended March 31, 2025. Additionally, settlement of vendor liabilities in
2024 resulted in