Company: CERO
Filing Date: 2025-12-05
Form Type: S-1
Source: 0001213900-25-118817
Chunk: 330

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-12-05
Form: S-1
Chunk 330
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– 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. F-8

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
the Company has the right to use the underlying asset, together with any periods covered by an extension option if the Company is reasonably
certain to exercise that option.

Right-of-use assets and
obligations for leases with an initial term of 12 months or less are considered short term and are (a) not recognized in the balance
sheet and (b) recognized as an expense on a straight-line basis over the lease term. The Company does not sublease any of its leased
assets to third parties and the Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

The accounting for leases
includes a number of reassessment and re-measurement requirements for lessees based on certain triggering events or impairment conditions.
There were no impairment indicators identified in each of the nine months periods ended September 30, 2025 and 2024, that would require
impairment testing of the Company’s right-of-use assets.

Certain of the Company’s
leases include variable lease costs to reimburse the lessor for real estate tax and insurance expenses, and certain non-