Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 111

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 111
---
 studies and clinical trials, regulatory developments and ongoing assessments as to each product
candidate’s commercial potential. The Company will need to, and plans to, raise substantial additional capital in the future. Future
R&D expenses may vary significantly between periods and from current expectations based on factors such as:

●expenses
incurred to conduct preclinical studies required to advance product candidates into clinical trials;

●per
patient clinical trial costs based on a number of factors, including number of patient clinical visits, clinical laboratory testing,
and potential medical imaging;

●the
number of clinical trials required for approval, the number of patients who enroll in each clinical trial, and the number and geographic
locations of sites included in the clinical trials;

●the
length of time required to screen and enroll eligible patients, screen-failure rate, or the discontinuation rates of enrolled patients;

●potential
additional safety monitoring requested by regulatory agencies;

●the
cost of insurance, including product liability insurance, in connection with clinical trials; and

●suspension
or termination of clinical development activities by regulators or institutional review boards for various reasons, including regulatory
noncompliance or a finding that the participants are being exposed to unacceptable health risks.

33

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 (Expense), Net

Other income (expense), 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 Three Months
Ended March 31, 2025