Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 149

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 149
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 in periods where the Company reports a net loss.

Segment
reporting - Operating segments are defined as components of a business for which separate discrete financial information is
available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company
operates as a single operating and reporting segment, reflecting our sole focus in developing next generation engineered T cell
therapeutics for the treatment of cancer. Our Chief Executive Officer serves as the Chief Operating Decision Maker (CODM), responsible
for assessing the Company’s performance and making resource allocation decisions. The CODM evaluates financial information on a
consolidated basis, focusing on key metrics such as research and development expense, general and administrative expenses, and other
income/expenses, which is reflected on the face of the Company’s consolidated statement of operations. The CODM allocates
resources based on the Company’s available cash resources, forecasted cash flow, and expenditures on a consolidated basis, as well
as an assessment of the probability of success of its research and development activities. Resource allocation decisions are informed
by budgeted and forecasted expense information, along with actual expenses incurred to date. The measure of segment assets is reported
on the condensed consolidated balance sheets as total assets. Disaggregated profit or loss information at the program or functional level
is not regularly provided to or relied upon by the CODM, as our integrated operating model emphasizes shared resources
and centralized decision-making.

10

Recently
adopted accounting standards – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income
Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity (PBE)
to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified
categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified
threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local,
and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. This pronouncement
is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 on
January