Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113118
Chunk: 22

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 22
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 recognized in earnings, measured as the difference between the investment’s cost and
its fair value at the impairment assessment date.

Concentration of credit risk – Financial instruments that potentially subject the Company to credit risk consist primarily of cash, restricted cash,
and cash equivalents. The Company’s cash, restricted cash, and cash equivalents are on deposit with two financial institutions that
management believe are of sufficiently high credit quality. Deposits at any of the Company’s financial institutions may, at times,
exceed federal insured limits.

Property and equipment
– Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method
over the estimated useful lives of the respective assets, generally three to five years or the remaining lease term for leasehold improvements,
if shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated
depreciation are removed from the accounts and the resulting gain or loss is reflected in the condensed consolidated statements of operations.

Impairment of long-lived assets – The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. When such an event occurs, management determines whether there has been an impairment
by comparing the anticipated undiscounted future net cash flows to the related asset’s carrying value. If an asset is considered
impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending
on the nature of the asset. Through September 30, 2025, the Company has not experienced any impairment losses on its long-lived assets.

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Leases – The
Company determines if an arrangement contains a lease at inception. A lease is an operating or financing contract, or part of a contract,
that conveys the right to control the use of an identified tangible asset for a period of time in exchange for consideration.

At lease inception, the Company
recognizes a lease liability equal to the present value of the remaining lease payments, and a right of use asset equal to the lease liability,
subject to certain adjustments, such as for lease incentives. In determining the present value of the lease payments, the Company uses
its incremental borrowing rate, determined by estimating the Company’s applicable, fully collateralized borrowing rate, with adjustment
as appropriate for lease term. The lease term at the lease commencement date is determined based on the non-cancellable period for which