Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 477

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Part II, Item 1A
Chunk 477
---
 Business Combination occurred as a result of a failure to
file and cause the SEC to declare a registration statement with respect to the resale of the underlying shares in a timely manner, have
resulted and may in the future result in the issuance of shares of Common Stock at an effective conversion price below the trading price
of our Common Stock at the time of such conversion.

We
cannot assure you that we will remain in compliance with all of the terms of the Series A Preferred Stock, Series C Preferred Stock or
Series D Preferred Stock and that such penalties and adjustments will not apply in the future. In addition, we cannot assure you that
we will not issue additional convertible or other derivative securities with highly dilutive penalty or adjustment provisions. As described
elsewhere in this Quarterly Report, the Company needs to obtain financing to fund its research and development activities and clinical
trials, as well as other operations. Under challenging conditions in the equity capital markets, particularly for pre-commercialization
biotech companies, we may have no viable alternatives to agreeing to inclusion of such provisions in the terms of future financings.

The
                                            impact of recent healthcare reform legislation and other changes in the healthcare industry
                                            and in healthcare spending on us is currently unknown, and may adversely affect our business
                                            model.

Our
revenue prospects could be affected by changes in healthcare spending and policy in the United States and abroad. We operate in a highly
regulated industry and new laws, regulations or judicial decisions, or new interpretations of existing laws, regulations or decisions,
related to healthcare availability, the method of delivery or payment for healthcare products and services could negatively impact our
business, operations and financial condition.

There have been, and likely
will continue to be, legislative and regulatory proposals at the foreign, federal and state levels directed at broadening the availability
of healthcare and containing or lowering the cost of healthcare. For more information, see the section of titled “Business –
Healthcare Laws and Regulations – Healthcare Reform” in the Annual Report on Form 10-K for the year ended December 31,
2024.

42

For example, the Medicare
Drug Price Negotiation Program, administered by CMS as part of the Inflation Reduction Act of 2022, commonly referred to as the IRA,
may apply to our products if they are selected for negotiation, which could materially reduce the amount of revenue we can generate from
our products if they are approved. Prior to the enactment of the One Big Beautiful Bill Act of 2025 (“OBBBA”),