Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 19

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 19
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 excluded from the diluted earnings per share calculation
if their effect is anti-dilutive, such as in periods where the Company reports a net loss.

9

Segment reporting - Operating segments
are defined as components of a business for which separate discrete financial information is available for evaluation by the chief operating
decision maker in deciding how to allocate resources and assess performance. The Company operates as a single operating and reporting
segment, reflecting our sole focus in developing next generation engineered T cell therapeutics for the treatment of cancer. Our
Chief Executive Officer serves as the Chief Operating Decision Maker (CODM), responsible for assessing the Company’s performance
and making resource allocation decisions. The CODM evaluates financial information on a consolidated basis, focusing on key metrics such
as research and development expense, general and administrative expenses, and other income/expenses, which is reflected on the face
of the Company’s consolidated statement of operations. The CODM allocates resources based on the Company’s available
cash resources, forecasted cash flow, and expenditures on a consolidated basis, as well as an assessment of the probability of success
of its research and development activities. Resource allocation decisions are informed by budgeted and forecasted expense information,
along with actual expenses incurred to date. The measure of segment assets is reported on the condensed consolidated balance sheets
as total assets. Disaggregated profit or loss information at the program or functional level is not regularly provided
to or relied upon by the CODM, as our integrated operating model emphasizes shared resources and centralized decision-making.

Recently adopted accounting standards – In December 2023,
the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation
and income taxes paid. ASU No. 2023-09 requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation
using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by
nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income
taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5%
of total income tax payments, net of refunds received. This pronouncement is effective for fiscal years beginning after December 15, 2024,
with early adoption permitted. The Company