Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 114

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 114
---
 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 a $0.1 million increase in other income during the three months ended March 31, 2024.

Net loss and net loss attributable to common
stockholders

For the three months ended March 31, 2025 and 2024, net loss amounted
to $5.1 million and $2.3 million, respectively, which represents an increase in net loss of $2.8 million, or 122.0%. During the three
months ended March 31, 2025, in connection with our Series A and Series B preferred stock conversions, and the redemption of Series C
Preferred Stock, we recorded deemed dividends of $0.3 million, and in connection with the adjustment in the exercise price of Series C
Common Warrants, we recorded deemed dividends of $0.1 million. Accordingly, for the three months ended March 31, 2025 and 2024, net loss
attributable to common stockholders amounted to $5.5 million, or $(1.59) per common share, and $2.3 million, or $(16.30) per common share,