Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 150

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 150
---
1, 2025. The adoption of this ASU had no impact on the Company’s consolidated financial position, results of
operations, or cash flows.

Accounting
standards not yet adopted – In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (Subtopic 220-40), which requires entities to provide more detailed disaggregation of expenses in the income
statement, focusing on the nature of the expenses rather than their function. The new disclosures will require entities to separately
present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation. Entities
will also be required to provide a qualitative description of the amounts remaining in relevant expense captions that are not separately
disaggregated quantitatively, disclose the total amount of selling expenses and, in annual reporting periods, provide a definition of
what constitutes selling expenses. This pronouncement is effective for fiscal years beginning after December 15, 2026, and interim periods
within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing this ASU to
determine the impact on its consolidated financial statements.

Management
does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect
on the Company’s consolidated financial statements.

NOTE
3 – BUSINESS COMBINATION

Business
Combination Agreement - On June 6, 2023, CERo Therapeutics, Inc. (“Predecessor”), which was incorporated in Delaware
on September 23, 2016, and based in South San Francisco, California, entered into the BCA with PBCE Merger Sub, Inc., a wholly-owned
subsidiary of PBAX, and PBAX, with the surviving operating entity being named CERo Therapeutics Holdings, Inc. (“Successor”
or the “Company”), and such transaction, the “Business Combination” or “Merger”.

The
Company is focused on genetically engineering human immune cells to fight cancer. The Predecessor focused on developing the CERo therapeutic
platform and had not yet begun clinical development or product commercialization. The Company’s efforts will focus on continued
product development, including clinical development, to support regulatory approval to commercialize and subsequent product commercialization.

The
BCA was amended on February 5, 2024 and again on February