Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2563

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 2563
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 statements of the combined Company, upon the consummation of the Merger. As a result,
the financial statements included in this report reflect (i) the historical operating results of CERo Therapeutics, Inc. prior to the
Merger and (ii) the combined results of the Company, CERo Therapeutics Holdings, Inc., following the Merger. The accompanying consolidated
financial statements include a Predecessor period, which includes the period from January 1, 2024 to February 13, 2024 concurrent with
the Merger, and a Successor period from February 14, 2024 through December 31, 2024. A black line between the Successor and Predecessor
periods has been placed in the consolidated financial statements and in the tables to the notes to the consolidated financial statements
to highlight the lack of comparability between these two periods.

Use of estimates – The preparation
of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses
incurred during the reporting period. Items subject to such estimates and assumptions include the estimates of the fair values of convertible
preferred stock, common stock, and preferred stock warrant liability, stock-based compensation expense, the present value of right-to-use
assets and lease liabilities, the valuation of earnout liability, and the valuation allowance associated with deferred tax assets. Actual
results could differ from those estimates.

Cash, restricted cash, and cash equivalents
– The Company considers all highly liquid investments with an original maturity from the date of purchase of three months or
less to be cash equivalents. As of December 31, 2024 and 2023, cash and cash equivalents consist of cash deposited with banks, including
a money market sweep account. Restricted cash consists of $74,756 and $79,756, respectively, held on account by a financial institution
as collateral for a demand letter of credit issued as a real estate security deposit.

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