Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 280

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 2
Chunk 280
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 to a
decrease in accretion in stock-based option expense and a decrease in bonuses paid of $132,000, and a decrease in other research and
development costs of $129,000.

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.

36

General
and Administrative Expenses

General
and administrative expenses were $4,013,000 for the six months ended June 30, 2025 as compared to $5,318,000 for the six months ended
June 30, 2024, reflecting a decrease of $1,305,000. The decrease during the six months ended June 30, 2025 as compared to the six months
ended June 30, 2024, was primarily due to a decrease of $1,750,000 in underwriting fees from the PBAX initial public offering, which
were incurred upon the consummation of the business combination in February 2024, and a decrease in executive salaries and benefits of
$68,000. This decrease was offset by an increase in professional fees of $516,000 primarily due 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 $(849,000)
for the six months ended June 30, 2025 as compared to other income of $4,952,000 for the six months ended June 30, 2024, reflecting a
negative change in other income, net of $5,801,000. The negative change was primarily due to (1) the recording of a $4,700,000 gain from
change in value of the Company’s earnout liability and a $320,000 gain recorded for the change in value of the Predecessor’s
preferred stock warrant liability during the six months ended June 30, 2024 as compared to $0 during the six months ended June 30, 2025,
(2) the recording of a gain on settlement of vendor liabilities of $589,000 during the six months ended June 30, 2024 compared to $0 during
the six months ended June