Company: CERO
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001213900-25-004742
Chunk: 375

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 375
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 federal and state authorities. Earnings per share –The Company reports both basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted average number of shares of common stock outstanding and excludes the dilutive effect of convertible preferred stock, convertible preferred stock warrants, stock options or any other type of convertible securities. Diluted earnings per share is calculated based on the weighted average number of shares of common stock outstanding and when the effect of stock options, warrants and other types of convertible securities is dilutive, they are included in the calculation. Dilutive securities are 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. Recent accounting pronouncements not yet adopted– In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This amends the ASC 815 Derivatives and Hedging—Contracts in Entity’s Own Equity to simplify the guidance on (1) accounting for convertible instruments, and (2) the derivatives scope exception for contracts in an entity’s own equity. The guidance on earnings per share (“EPS”) has also been amended to simplify the calculations and make them more internally consistent. The standard will be effective for nonpublic business entities beginning after December 15, 2023. The Company is currently evaluating this new standard and the impact it will have on its financial statements, information technology systems, processes, and internal controls.

NOTE 3 – NET LOSS PER COMMON SHARE

The accounting standards require the presentation
of both basic and diluted earnings per share on the face of the statements of operations. The Company’s basic net loss per share
is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. If there are dilutive
securities, diluted income per share is computed by including common stock equivalents which includes shares issuable upon the exercise
of stock options into shares of common stock, exercise of preferred warrants into shares of preferred stock, and conversion of preferred
stock into shares of common stock, net of any shares assumed to have been purchased with the proceeds, using the treasury stock method.
In periods for which the Company reports a net loss, the common stock equivalents are not included, as they