Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 124

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 124
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,
and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make
it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee
(the “Audit Committee”) and compensation committee (the “Compensation Committee”), and qualified executive officers.

As a result of disclosure
of information in the filings required of a public company, our business and financial condition will become more visible, which may
result in an increased risk of threatened or actual litigation, including by competitors and other third parties. If such claims are
successful, our business and results of operations could be harmed, and even if the claims do not result in litigation or are resolved
in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm
our business, results of operations, and financial condition.

As a result of becoming a public company, we are obligated to develop and maintain proper and effective internal controls over financial reporting and any failure to maintain the adequacy of these internal controls may adversely affect investor confidence in our company and, as a result, the value of our common stock.

We are required, pursuant
to Section 404, to furnish a report by management on, among other things, the effectiveness of our internal controls over financial
reporting. In 2026, five years after our IPO, we may be required to comply with auditor attestation requirements, as required by Section 404.
This will require that we incur substantial additional professional fees and internal costs to expand our accounting and finance functions
and that we expend significant management efforts.

We may identify weaknesses
in our system of internal financial and accounting controls and procedures that could result in a material misstatement of our consolidated
financial statements. Our control over financial reporting will not prevent or detect all errors and all fraud. A control system, no
matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives
will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that
misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.

Any failure to maintain
internal control over financial reporting could severely inhibit our ability to accurately report our financial condition, results of
operations or cash flows. If our financial statements are not accurate, investors may not have a complete understanding of our operations.
If