Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Loss Before Income Taxes

The components of loss before income taxes were as follows:

	2025 (Successor)			2024 (Successor and Predecessor)
Domestic	$	(19,920,262	)	$	(8,304,423	)
Total loss before income taxes	$	(19,920,262	)	$	(8,304,423	)

Schedule of Reconciles the U.S. Federal Statutory Income Tax Rate

The following table reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate for the year ended December 31, 2025:

	For the Year Ended December 31, 2025
	Amount			Percentage
Federal income tax at statutory rate	$	(4,183,000	)		(21.0	)
Permanent differences		97,000			0.5
Tax credits generated in current year, net of utilized		(62,000	)		(0.3	)
Change in valuation allowance		4,148,000			20.8
Total	$	-			-

As previously disclosed for the year ended December 31, 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differed from the federal statutory income tax rate as follows:

	2024
Federal income tax at statutory rate	$	(1,745,000	)
State income tax, net of federal benefit		(580,000	)
Permanent differences		(1,358,000	)
Tax credits generated in current year, net of utilized		(408,000	)
Other		51,000
Change in valuation allowance		4,040,000
Total	$	-

Schedule of Net Deferred Tax Assets

The approximate components of the net deferred tax assets as of December 31, 2025 and 2024 were as follows:

	2025			2024
Net operating loss carryforwards	$	20,461,000		$	12,227,000
Section 174 research and development capitalization		-			2,999,000
Research credits		2,005,000			1,943,000
Fixed assets and intangible assets		361,000			403,000
Right of use asset		(185,000	)		(410,000	)
Lease liability, net		386,000			251,000
Accruals and others		154,000			230,000
		23,182,000			17,643,000
Less: valuation allowance		(23,182,000	)		(17,643,000	)
Net deferred tax assets	$	-		$	-

Schedule of Liability for Uncertain Tax Positions

A reconciliation of the beginning and ending amount of the liability for uncertain tax positions, excluding potential interest and penalties, is as follows:

Balance as of December 31, 2024	$	538,000
Increase/(decrease) based on current year tax positions		11,000
Increase/(decrease) for prior year tax positions		-
Lapses of applicable statutes		-
Balance as of December 31, 2025	$	549,000

CERO THERAPEUTICS HOLDINGS, INC. 10-K