Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2004

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 2004
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,722, respectively.

F-16

NOTE 6 – ACCRUED LIABILITIES

Accrued liabilities consisted of the following as of December 31, 2024
and 2023:

    December 31,  
    December 31, 

    2024  
    2023 

    (Successor)  
    (Predecessor) 
  
    Employee-related liabilities 
    $244,302  
    $68,697 
  
    Accrued franchise taxes 
     78,448  
     - 
  
    Accrued legal expenses 
     593,825  
     46,466 
  
    Accrued interest 
     -  
     27,637 
  
    Penalty for late S-1 filing and effectiveness 
     55,000  
     - 
  
    Accrued consulting and professional services 
     941,600  
     - 
  
    Other accrued expenses 
     -  
     1,833 

    $1,913,175
    $144,633 

NOTE 7 – Leases

As of December 31, 2024 and
2023, the Company holds a five-year lease for laboratory and office space. The lease has escalating contractual rent and variable rent
components and the Company elected to separate the contractual and variable elements for valuing the operating lease liability and right-to-use
asset. The lease does not have any options for extension or expansion. The Company recorded the following lease costs:

    For the period from February 14, 2024 through December 31, 2024 (Successor)  
    For the period from January 1, 2024 through February 13, 2024 (Predecessor)  
    For the year ended December 31, 2023 (Predecessor) 
  
    Operating leases: 

    Operating lease cost 
    $762,057  
    $152,887  
    $930,913 
  
    Variable operating lease cost 
     581,860  
     116,371  
     637,016 
  
    Total lease cost 
    $1,343,917  
    $269,258  
    $1,567,929 

The right-of-use asset, net for the operating lease was recorded in
the consolidated balance sheets as follows:

    December