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

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 1
Chunk 22
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 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 1, 2025. The adoption of this ASU had no impact on the Company’s consolidated financial position, results of
operations, or cash flows.

Accounting
standards not yet adopted – In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (Subtopic 220-40), which requires entities to provide more detailed disaggregation of expenses in the income
statement, focusing on the nature of the expenses rather than their function. The new disclosures will require entities to separately
present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation. Entities
will also be required to provide a qualitative description of the amounts remaining in relevant expense captions