Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2067

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 2067
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 regulatory noncompliance or a finding that the participants
                                            are being exposed to unacceptable health risks.

104

General and Administrative Expenses

General and administrative
expenses consist principally of salaries and related costs for personnel in executive and administrative functions, including stock-based
compensation, travel expenses and recruiting expenses. Other general and administrative expenses include professional fees for legal,
accounting and tax-related services, consulting fees, insurance costs, and investor relations fees.

The Company anticipates that
its general and administrative expenses will increase in the future as the Company increases headcount and contracted services for operational
support for expanded operations and infrastructure. The Company also anticipates that general and administrative expenses will increase
as a result of expenses for accounting, audit, legal and consulting services, as well as costs associated with maintaining compliance
with Nasdaq listing rules and SEC requirements, director and officer liability insurance, investor and public relations activities and
other expenses associated with operating as a public company.

Other Income, Net

Other income, net consists predominantly of interest income from interest
bearing bank accounts, interest expense on payables, gains recorded on settlements reached with vendors on payables, and the gain or loss
on the revaluation of earnout and derivative liabilities, which represents the change in fair value of earnout liabilities or outstanding
warrants between periods.

Results of Operations for the years ended December
31, 2024 and 2023

The Results of Operations
for year ended December 31, 2024 are pro forma as the period presented in the following table and discussion includes the Predecessor
for the period from January 1, 2024 through February 13, 2024 and the Company for the period from February 14, 2024 through December 31,
2024. This pro forma period from January 1, 2024 to December 31, 2024 does not include the Merger transactions that occurred on-the-line.

    For the Years Ended December 31,  

    2024  

    (Pro forma) (Predecessor and Successor)  
    2023 (Predecessor)  
    Difference  
    Percentage Change 
  
    Operating expenses: 

    Research and development 
    $7,079,744  
    $5,288,580  
    $1,791,164  
     33.9%
  
    General and administrative 
     9,118,292  
     2,386,469