Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 90

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 90
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 recognized in the consolidated statements of operations.

The accounting for stock options granted to outside consultants is consistent with the accounting for stock-based payments to officers and directors, as described above, by measuring the cost of services received in exchange for equity awards utilizing the grant date fair value of the awards, with the cost recognized as stock-based compensation expense on the straight-line basis in the Company’s financial statements over the vesting period of the awards.

Recent Accounting Standards

See the section titled in Note 2 to the Company’s condensed consolidated financial statements for the quarter ended June 30, 2025, appearing elsewhere herein.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

As a smaller reporting company, we are not required to provide the information required by this Item.

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