Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 428

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 428
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 to such ownership
changes has not been determined.

As of December 31, 2023, the Company has research
credit carry forwards of approximately $930,000 and $1,296,000 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 detailed analysis of all amounts claimed as research credits for federal or state tax purposes. As a result,
amounts ultimately realized for research credits were included in management’s consideration of uncertain tax benefits.

As of December 31, 2023 and 2022, the Company
had an unrecognized tax benefit balance of approximately $459,000 and $427,000, respectively, related to R&D credits.

No amount of unrecognized tax benefits as of
December 31, 2023 and 2022, if recognized, would reduce the Company’s effective tax rate because the benefits would be in the form
of tax credit carryforwards, which would attract a full valuation allowance. There are no provisions for which it is reasonably possible
that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. Because
the statute of limitations does not expire until after the net operating loss and credit carryforwards are actually used, the statutes
are still open on calendar years ended 2016 and 2017 forward for federal and state purposes.

The Company did not recognize any expense for
interest and penalties related to uncertain tax positions during 2023 and 2022, and the Company does not have any amounts related to
interest and penalties accrued at December 31, 2023 and 2022.

The Company files U.S. federal and state tax
returns. The Company’s tax years will remain open for examination by the federal and state authorities for three and four years,
respectively, from the date of utilization of any net operating loss credit.

A reconciliation of the beginning and ending
amount of the liability for uncertain tax positions, excluding potential interest and penalties, is as follows:

| Balance as of December 31, 2022                         |     | $ | 427,000 |
| Increase/(decrease) based on current year tax positions |     |   |  17,000 |
| Increase/(decrease) for prior year tax positions        |     |   |  15,000 |
| Lapses of applicable statutes                           |