Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 277

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 2
Chunk 277
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 during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, was primarily due to a decrease
in salaries and benefits of $505,000 primarily due to a decrease in stock-based compensation of $478,000 attributable to a decrease in
accretion of stock option expense. This decrease was offset by an increase in other general and administrative expenses of $41,000.

35

Other
Income (Expense), Net

Other expense was $693,000
for the three months ended June 30, 2025 as compared to other income of $2,700,000 for the three months ended June 30, 2024, reflecting
a negative change of $3,393,000. The negative change was primarily due to (1) the recording of a $2.9 million gain from change in value
of the Company’s earnout liability during the three months ended June 30, 2024 as compared to $0 during the three months ended June
30, 2025, (2) the recording of a gain on settlement of vendor liabilities of $447,000 during the three months ended June 30, 2024 as compared
to $0 during the three months ended June 30, 2025, and (3) the recording of stock-based inducement expense of $707,300 during the three
months ended June 30, 2025 related to the conversion of Series C Preferred Stock as compared to $0 during the three months ended June
30, 2024. These negative changes in other expenses, net were offset by the recording of other expense of $631,000 during the three months
ended June 30, 2024 related to registration rights penalties recorded compared to $0 during the three months ended June 30, 2025, and
an increase in interest income, net of $30,000.

Net
loss and net loss attributable to common stockholders

For the three months ended
June 30, 2025 and 2024, net loss amounted to $5,417,000 and $2,449,000, respectively, which represents an increase in net loss of $2,968,000,
or 121.2%. During the three months ended June 30, 2025, in connection with our Series A, Series B and Series C preferred stock conversions,
we recorded deemed dividends of $24,700,000. Accordingly,