Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 232

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 232
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. Additional studies required to address FDA questions increased pre-clinical study
costs by $0.3 million. The remaining $0.2 million increase in the nine-month period ended September 30, 2024, versus the nine-month period
ended September 30, 2023, was predominantly related to lab supplies and expenses and facilities rent escalation.

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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.

Other Income

Other income was $5.1 million
for the nine-month period ended September 30, 2024, compared to $0.5 million for the nine-month period ended September 30, 2023, reflecting
an increase of $4.6 million. The increase in 2024 relative to 2023 was predominantly due to the $4.7 million change in value of the Company’s
Earnout Liability in the nine-month period ended September 30, 2024. Settlement of vendor liabilities in 2024 resulted in a $0.6 million
increase in income in 2024, offset by an additional $0.1 million less interest income and $0.6 million other expense for the delayed
S-1 penalty.

Results of Operations for the Year Ended December 31, 2023 (Predecessor) as Compared to Year Ended December 31, 2022 (Predecessor)

| Operating expenses:            |     | 2023          
 (Predecessor) |            |   |     | 2022          
 (Predecessor) |             |   |     | Difference |            |   |
|:-------------------------------|:----|:--------------|-----------:|:--|:----|:--------------|------------:|:--|:----|:-----------|-----------:|:--|
| Research and development       |     | $             |  5,288,580 |   |     | $             |   9,845,603 |   |     | $          | (4,557,023 | ) |
| General and administrative     |     |               |  2,386,469 |   |     |               |   2,125,628 |   |     |            |    260