Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 416

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 416
---
 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 would be anti-dilutive.

The following table summarizes the number of
shares of common stock issuable upon conversion or exercise, as applicable, of convertible securities, warrants and restricted stock
that were not included in the calculation of diluted net loss per share because such shares are antidilutive:

|                                |     | Year ended December 31, |       2023 |     |     |       2022 |
|:-------------------------------|:----|:------------------------|-----------:|:----|:----|-----------:|
| Common stock options           |     |                         |    782,499 |     |     |