Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 439

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 439
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 Lease liability, net                                |     |   |     251,000 |   |     |   |     657,000 |   |
| Accruals and others                                 |     |   |     230,000 |   |     |   |      66,000 |   |
|                                                     |     |   |  17,643,000 |   |     |   |  13,603,000 |   |
| Less: valuation allowance                           |     |   | (17,643,000 | ) |     |   | (13,603,000 | ) |
| Net deferred tax assets                             |     | $ |           - |   |     | $ |           - |   |

F-63

The Company has incurred
significant tax losses since inception. Based on the available objective evidence, management cannot conclude it is more likely than not
that the net deferred tax assets will be fully realizable. Accordingly, the Company has provided a full valuation allowance against its
net deferred tax assets. For the periods ended December 31, 2024 and 2023, the valuation allowance increased by approximately $
and $, respectively.

At December 31, 2024, the
Company has federal net operating loss carryforwards of approximately $ that begin to expire in 2036. The Company also has federal
net operating losses of $ that arose after the 2017 tax year that will carry forward indefinitely and the utilization of which
is limited to % of taxable income for tax years beginning after 2021. The Company has state net operating loss carryforwards of approximately
$ that will begin to expire in 2036.

Under the Tax Reform Act
of 1986, the amount of and benefits from net operating loss carry forwards may be impaired or limited in certain circumstances. Events
which cause limitations in the amount of net operating losses that the Company may utilize in any one year include, but are not limited
to, a cumulative ownership change of more than %, as defined, over a three-year period. The impact of any limitations that may be imposed
due to such ownership changes has not been determined.

As of December 31, 2024,
the Company has research credit carry forwards of approximately $ and $ for federal and state tax purposes, respectively.
If not utilized, the federal carryforward will expire in various amounts beginning in 2040. The California credits can be carried forward
indefinitely. The Company has not undertaken a