Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1698

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1698
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 with these requirements,
we may need to hire more employees in the future or engage outside consultants, which will increase our operating expenses.

92

In addition, changing laws,
regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing
legal and financial compliance costs, and making some activities more time-consuming. These laws, regulations and standards are subject
to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest substantial resources
to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses
and a diversion of management’s time and attention from business operations to compliance activities. If our efforts to comply with
new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to
their application and practice, regulatory authorities may initiate legal proceedings against us and our business may be harmed.

We also expect that being
a public company and these new rules and regulations will make it more expensive for us to obtain director and officer liability insurance,
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, 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.

We have identified a material weakness in
our internal control over financial reporting. If our remediation of such material weaknesses is not effective, or if we identify additional
material weaknesses in the future or otherwise fail to develop and maintain effective internal control over financial reporting, our ability
to produce timely and accurate financial statements or comply with applicable laws