Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1662

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1662
---
 deductibility
of such federal net operating losses is limited to 80% of taxable income. It is uncertain if and to what extent various states will conform
to federal tax laws. Under Sections 382 and 383 of the Code, and corresponding provisions of state law, if a corporation undergoes an
“ownership change” (generally defined as a greater than 50 percentage point change (by value) in the equity ownership of certain
stockholders over a rolling three-year period), the corporation’s ability to use its pre-change net operating loss carryforwards
and other pre-change tax attributes to offset its post-change income or taxes may be limited. We have not yet completed a Section 382
or Section 383 analysis, and therefore, there can be no assurances that any previously experienced ownership changes have not materially
limited our utilization of affected net operating loss carryforwards or other tax attributes. We may experience ownership changes in the
future as a result of shifts in our stock ownership. We anticipate incurring significant additional net losses for the foreseeable future,
and our ability to utilize net operating loss carryforwards associated with any such losses to offset future taxable income may be limited
to the extent we incur future ownership changes. In addition, at the state level, there may be periods during which the use of net operating
loss carryforwards is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. As a result, we
may be unable to use all or a material portion of our net operating loss carryforwards and other tax attributes, which could adversely
affect our future cash flows.

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 Trump administration has proposed various U.S. federal tax law changes, which if enacted
could have a material impact on our business, cash flows, financial condition or results of operations. 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 tax assets, could