Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 141

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 141
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 with CERo Therapeutics, Inc. surviving the Merger as
a wholly-owned subsidiary of the Company, the accounting acquirer. The transaction was accounted for as a forward merger asset acquisition.

Unless the context otherwise requires, the “Company,” for
periods prior to the Closing, refers to CERo Therapeutics, Inc. (“Predecessor”), and for the periods after the Closing, refers
to CERo Therapeutics Holdings, Inc. (“Successor”). As a result of the Merger, the results of operations, financial position
and cash flows of the Predecessor and the Company are not directly comparable. CERo Therapeutics, Inc. was deemed to be the Predecessor
entity. Accordingly, the historical financial statements of CERo Therapeutics, Inc. became the historical financial statements of the
combined Company, upon the consummation of the Merger. As a result, the financial statements included in this report reflect (i) the historical
operating results of CERo Therapeutics, Inc. prior to the Merger and (ii) the combined results of the Company, CERo Therapeutics Holdings,
Inc., following the Merger. The accompanying unaudited condensed consolidated financial statements include a Predecessor period, which
includes the period from January 1, 2024 to February 13, 2024 concurrent with the Merger, and Successor periods from February 14, 2024
through June 30, 2024, for the three months ended June 30, 2024, and for the three and six months ended June 30, 2025. A black line between
the Successor and Predecessor periods has been placed in the unaudited condensed consolidated financial statements and in the tables to
the notes to the condensed consolidated financial statements to highlight the lack of comparability between these two periods.

Use
of estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements,
and the reported amounts of expenses incurred during the reporting period. Items subject to such estimates and assumptions include the
estimates of the fair value of investments in equity securities, the fair value of convertible preferred stock, common stock, and preferred
stock warrant liability, the fair value of stock-based compensation expense, the present value of right-to-use assets and lease liabilities,
the valuation of earn