Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 98

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 98
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 maintain profitability;

●the
                                            level of taxes that we are required to pay; and

●the
                                            availability of capital.

Any
reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors,
which may adversely affect our future profitability.

Changes in tax laws or regulations
that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, financial condition or
results of operations.

New income, sales, use or other tax laws, statutes, rules, regulations or ordinances could be enacted at any
time, which could adversely affect our business operations
and financial performance. Further, existing tax laws, statutes, rules, regulations or ordinances could be interpreted, changed, modified
or applied adversely to us. For example, the OBBBA was signed into law on July 4, 2025 and made significant changes to U.S. federal tax
law. Under Section 174 of the Code, in taxable years beginning after December 31, 2021, expenses that are incurred for research and development
performed outside the U.S. will be capitalized and amortized, which may have an adverse effect on our cash flow. The OBBBA provides that
for taxable years beginning after December 31, 2024, expenses that are incurred for research and development performed in the United States
may, at the taxpayer’s election, be immediately deducted or capitalized and amortized. In addition, the OBBBA provides that for
taxable years beginning after December 31, 2021 and before January 1, 2025, certain eligible taxpayers generally may elect to retroactively
deduct expenses for research and development performed in the U.S. in such taxable years by filing amended tax returns for such taxable
years, and all other taxpayers that are not eligible to make such an election and that amortized expenses for research and development
performed in the U.S. in such taxable years generally may elect to accelerate and deduct the remaining unamortized amounts of such research
and development expenses (i) in the first taxable year beginning after December 31, 2024, or (ii) ratably over the two-taxable year period
beginning with the first taxable year beginning after December 31, 2024. In addition, it is uncertain if and to what extent various states
will conform to federal tax laws. Future tax reform legislation could have a material impact on the value of our deferred