Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 329

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 329
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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, cash equivalents, and restricted cash. The
Company’s cash, cash equivalents, and restricted cash are on deposit with two financial institutions that management believes 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
and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
useful lives of the respective assets, generally three to five years or the remaining lease term for leasehold improvements, if shorter.
Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation
are removed from the accounts and the resulting gain or loss is reflected in the statements of operations.

Impairment of long-lived assets–
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, 2024, the Predecessor and the Company have not experienced any impairment losses on its long-lived
assets.

Leases –The Company determines
if an arrangement is, or contains, a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right
to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments
arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value
of unpaid lease payments over the lease term using the Company’s incremental borrowing rate applicable to the underlying asset
unless the implicit rate is readily determinable. The Company determines the lease term as the noncancellable period of the lease and
may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases
with a term of 12 months or less