Company: CERO
Filing Date: 2025-07-21
Form Type: S-1
Source: 0001213900-25-066152
Chunk: 312

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-07-21
Form: S-1
Chunk 312
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ing terms. The related amounts
are recognized in the consolidated statements of operations.

Income taxes –
The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined
based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for
the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce
deferred tax assets to the amounts expected to be realized.

The Company follows tax accounting
requirements for the recognition, measurement, presentation, and disclosure in the financial statements of any uncertain tax positions
that have been taken or expected to be taken on a tax return. No liability related to uncertain tax positions is recorded in the financial
statements. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of income
tax expense, as necessary. The Company has not recorded any interest or penalties associated with income tax. Tax years subsequent to
2021 are subject to examination by federal and state authorities.

Earnings per share –
The Company reports both basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted average number
of shares of common stock outstanding and excludes the dilutive effect of convertible preferred stock, warrants for convertible preferred
stock or common stock, stock options or any other type of convertible securities. Diluted earnings per share is calculated based on the
weighted average number of shares of common stock outstanding and when the effect of stock options, warrants and other types of convertible
securities is dilutive, they are included in the calculation. Dilutive securities are excluded from the diluted earnings per share calculation
if their effect is anti-dilutive, such as in periods where the Company reports a net loss.

F-10 Segment reporting -Operating segments are defined as components of a business for which separate discrete financial information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates as a single operating and reporting segment, reflecting our sole focus in developing next generation engineered T cell therapeutics for the treatment of cancer. Our Chief Executive Officer serves as the Chief Operating Decision Maker (CODM), responsible for assessing the Company’s performance and making resource allocation decisions. The CODM evaluates financial information on a consolidated basis, focusing on key metrics such as research and development expense, general and administrative expenses, and other income/expenses, which is reflected on the face of the Company’s consolidated statement of operations.