Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 80

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 80
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 IND for CER-1236.

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.

General and Administrative Expenses

General and administrative expenses were $1,970,000 for the three months
ended June 30, 2025 as compared to $2,434,000 for the three months ended June 30, 2024, reflecting a decrease of approximately $464,000.
The decrease 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.

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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, 202