Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 77

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 77
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 Nasdaq Listing Rule 5550(a)(2), which is required for continued listing of the Common
Stock on Nasdaq. We timely appealed the delisting determination by requesting a hearing before the Nasdaq Panel. Such request for a Nasdaq
Panel hearing stayed the suspension of the Company’s securities. On July 7, 2025, Nasdaq informed us that they had determined that
we have regained compliance with the Bid Price Requirement and were therefore in compliance with the continued listing requirements.
As a result, Nasdaq canceled the hearing and the Common Stock will continue 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);

●