Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 273

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 2
Chunk 273
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 to be listed and traded on the Nasdaq Capital Market, subject
to maintaining all listing standards.

Results
of Operations

Revenue

Predecessor
and the Company have not recognized any revenue from any sources, including from product sales, and the Company does not expect to generate
any revenue from the sale of products in the foreseeable future. If the development efforts for the Company’s product candidates,
each of which is a specific product and indication combination, are successful and result in regulatory approval, or if the Company executes
license agreements with third parties, the Company may generate revenue from R&D services, from the achievement of development milestones
or from milestones and royalties related to product sales. However, there can be no assurance as to when any revenues will be generated,
if at all.

33

Operating
Expenses

Research
and Development Expenses

R&D
expenses consist of discovery activities, manufacturing development and production, preclinical and clinical development, and regulatory
filing for product candidates. R&D expenses are recognized as incurred and payments made prior to the receipt of goods or services
to be used in R&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;

●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