Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 427

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 427
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   |
| Right of use asset                                  |     |   |    (613,000 | ) |     |   |   (598,000 | ) |
| Lease liability, net                                |     |   |     657,000 |   |     |   |    634,000 |   |
| Accruals and others                                 |     |   |      66,000 |   |     |   |     42,000 |   |
|                                                     |     |   |  13,603,000 |   |     |   |  9,170,000 |   |
| Less: valuation allowance                           |     |   | (13,603,000 | ) |     |   | (9,170,000 | ) |
| Net deferred tax assets                             |     | $ |           - |   |     | $ |          - |   |

<div align='center'>F-64

CERo Therapeutics, Inc.

Notes to Financial Statements</div>

The Company has incurred significant tax losses
since inception. Based on the available objective evidence, management cannot conclude it is more likely than not that the net deferred
tax assets will be fully realizable. Accordingly, the Company has provided a full valuation allowance against its net deferred tax assets.
For the years ended December 31, 2023 and 2022, the valuation allowance increased by approximately $4,433,000 and $2,964,000, respectively.

At December 31, 2023, the Company has federal
net operating loss carryforwards of approximately $727,000 that begin to expire in 2036. The Company also has federal net operating losses
of $28,973,000 that arose after the 2017 tax year that will carry forward indefinitely and the utilization of which is limited to 80%
of taxable income for tax years beginning after 2021. The Company has state net operating loss carryforwards of approximately $40,522,000
that will begin to expire in 2036.

Under the Tax Reform Act of 1986, the amounts
of and benefits from net operating loss carry forwards may be impaired or limited in certain circumstances. Events which cause limitations
in the amount of net operating losses that the Company may utilize in any one year include, but are not limited to, a cumulative ownership
change of more than 50%, as defined, over a three-year period. The impact of any limitations that may be imposed due