Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 15

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 15
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Stella”). Investments in equity securities are initially measured at cost. Cost is based upon either the cost of the investment or the estimated
market value of the investment at the time it was acquired, whichever can be more clearly determined. The Company has elected the measurement
alternative for equity securities without readily determinable fair values. Under this alternative, if the Company identifies an observable
price change in an orderly transaction for an identical or similar investment of the same issuer, the Company measures the equity security
at fair value as of the date that the observable transaction occurred. Any adjustments resulting from observable price changes are recognized
in earnings. The Company monitors these investments for changes in observable prices from orderly transactions and assesses them for impairment.
If an equity security is deemed to be impaired, an impairment loss is recognized in earnings, measured as the difference between the investment’s
cost and its fair value at the impairment assessment date.

Concentration
of credit risk – Financial instruments that potentially subject the Company to credit risk consist primarily of cash, restricted
cash, and cash equivalents. The Company’s cash, restricted cash, and cash equivalents are on deposit with two financial institutions
that management believe are of sufficiently high credit quality. Deposits at any of the Company’s financial institutions may, at
times, exceed federal insured limits.

7

Property
and equipment – Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the
straight-line method over the estimated useful lives of the respective assets, generally three to five years or the remaining lease term
for leasehold improvements, if shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition,
the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in the condensed
consolidated statements of operations.

Impairment
of long-lived assets – The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. When such an event occurs, management determines whether there has been
an impairment by comparing the anticipated undiscounted future net cash flows to the related asset’s carrying value. If an asset
is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised
value, depending on the nature of the asset. Through June 30, 2025, the Company has not experienced any impairment losses on its long-lived
assets.

Leases
– The Company determines