Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 28

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 28
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    2025  
    2024 

    (Successor)  
    (Successor) 
  
    Employee-related liabilities 
    $61,078  
    $244,302 
  
    Accrued franchise taxes 
     78,448  
     78,448 
  
    Accrued legal expenses 
     -  
     593,825 
  
    Insurance payable 
     275,133  
     - 
  
    Penalty for late S-1 filing and effectiveness 
     55,000  
     55,000 
  
    Accrued consulting and professional services 
     -  
     941,600 

    $469,659  
    $1,913,175 

NOTE 7 – LEASES

As of March 31, 2025 and
December 31, 2024, 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 three months ended March 31, 2025 (Successor)  
    For the period from February 14, 2024 through March 31, 2024 (Successor)  
    For the period from January 1, 2024 through February 13, 2024 (Predecessor) 
  
    Operating leases: 

    Operating lease cost 
    $229,331  
    $76,444  
    $152,887 
  
    Variable operating lease cost 
     187,730  
     58,185  
     116,371 
  
    Total lease cost 
    $417,061  
    $134,629  
    $269,258 

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

    March 31,  
    December 31, 

    2025  
    2024 

    (Successor)  
    (Successor) 
  
    Right-of-use assets, net 
    $1,271,186  
    $1,464,367 

15

The operating lease liability