Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 307

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 307
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&D
are capitalized until the goods or services are received. Costs incurred in obtaining technology licenses through asset acquisitions,
if incurred, will be charged to R&D expense if the licensed technology has not reached technological feasibility and has no alternative
future use. R&D expenses include or could include:

    ●
    employee-related expenses, including salaries, bonuses, benefits, stock-based compensation and other related costs for those employees involved in R&D efforts;

    ●
    external R&D expenses incurred under agreements with preclinical research organizations, clinical research organizations, investigative sites, centralized clinical laboratories, and consultants to conduct preclinical and clinical studies;

    ●
    costs related to manufacturing material for preclinical studies and clinical trials, including fees paid to contract development and manufacturing organizations;

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    ●
    product-liability insurance for clinical development product(s);

    ●
    laboratory supplies and research materials;

    ●
    software and systems related to R&D activities;

    ●
    costs related to regulatory filing and compliance; and

    ●
    facilities, depreciation and other allocated expenses, which include direct and allocated expenses for rent, maintenance of facilities, and equipment.

Product candidates in later
stages of development generally have higher development costs than those in earlier stages of clinical development, primarily due to the
increased size and duration of later-stage clinical trials. The Company plans to substantially increase its R&D expenses for the foreseeable
future as it continues the development of its product candidates through clinical development. The Company cannot determine with certainty
the timing of initiation, the duration or the costs of current or future preclinical studies and clinical trials required for regulatory
approval due to the inherently unpredictable nature of preclinical and clinical development. Clinical and preclinical development timelines,
the probability of success and development costs can differ materially from expectations. The Company anticipates that it will make determinations
as to which product candidates to pursue and how much funding to direct to each product candidate on an ongoing basis in response to the
results of ongoing and future preclinical studies and clinical trials, regulatory developments and ongoing assessments as to each product
candidate’s commercial potential. The Company will need to, and plans to, raise substantial additional capital in the future. Future
R&D expenses may vary significantly between periods and from current expectations based on factors such as:

    ●
    expenses incurred to conduct preclinical studies required to advance product candidates into clinical trials;

    ●
    per patient clinical trial costs based on a number of factors, including number of patient clinical visits, clinical