Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 209

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 209
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 three months
ended June 30, 2025 as compared to $2,714,000 for the three months ended June 30, 2024, reflecting an increase of $40,000. The increase
was primarily attributable to an increase in clinical expenses of approximately $1,056,000 and an increase in scientific consulting fees
of $93,000, offset by a decrease in salaries and benefits of $893,000 primarily due to a decrease in stock-based compensation of $728,000
attributable to a decrease in accretion of stock option expense, and a decrease in lab and other expenses of $216,000. During the first
quarter of 2025, we began clinical trials related to the 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.

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 $