Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 426

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 4
Chunk 426
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Item 4. Controls and Procedures

Disclosure controls are
procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the
Exchange Act is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure
controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including
the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

The Company’s Principal
Executive Officer and Principal Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures
as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the certifying officers
concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective
due to the existence of material weaknesses in internal control over financial reporting.

Material Weaknesses Identified

The material weaknesses
identified include:

●A
lack of sufficient personnel with appropriate technical accounting expertise and experience in U.S. GAAP and SEC reporting requirements;

●Inadequate
processes for assessing and accounting for the impact of preferred stock conversions, including the failure to properly evaluate embedded
features and related classification and measurement considerations; and

●Deficiencies
in the initial recognition and valuation of investments in equity securities, including insufficient documentation and analysis supporting
fair value determinations.

These control deficiencies
have resulted in the Company’s inability to timely file periodic reports and have led to errors in the initial accounting treatment
of complex financial instruments.

Remediation Plan

Management is actively developing
a remediation plan to address these material weaknesses. The plan includes:

●Recruiting
additional qualified accounting personnel with expertise in financial reporting and complex financial instruments;

●Engaging
third-party consultants to assist with technical accounting matters; and

●Implementing
enhanced financial reporting systems and internal controls.

Execution of this remediation
plan is contingent upon the availability of adequate financial resources.

Changes in Internal Control Over Financial
Reporting

During the most recently
completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or
is reasonably likely to materially affect, our internal control over financial reporting.

44

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may
become subject to various