Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 12

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 12
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. became the historical financial 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 unaudited
condensed 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 March 31, 2024 and for the three months ended March
31, 2025. A black line between the Successor and Predecessor periods has been placed in the unaudited condensed consolidated financial
statements and in the tables to the notes to the condensed 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 March 31, 2025 and December 31, 2024, cash and cash equivalents consist of
cash deposited with banks, including a money market sweep account, and restricted cash of $74,756 and $74,756, 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