Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 85

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 85
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 by environmental, social and corporate governance matters or our reporting of such matters.

Investors have increased
their emphasis on the environmental, social and governance (“ESG”) practices of companies across all industries, including
the environmental impact of operations and human capital management. Expectations regarding voluntary ESG initiatives and disclosures
may result in increased costs (including but not limited to increased costs related to compliance, stakeholder engagement, contracting
and insurance), enhanced compliance or disclosure obligations, or other adverse impacts to our business, financial condition, or results
of operations.

While we have internal efforts
directed at ESG matters and preparations for any increased required future disclosures, such initiatives may be costly and may not have
the desired effect. We may be perceived to be not acting responsibly in connection with these matters, which could negatively impact
us. Moreover, we may not be able to successfully complete such initiatives due to factors that are within or outside of our control.
Even if this is not the case, our actions may subsequently be determined to be insufficient by various stakeholders, and we may be subject
to investor or regulator engagement on our ESG efforts, even if such initiatives are currently voluntary.

Certain market participants,
including major institutional investors and capital providers, use third-party benchmarks and scores to assess companies’ ESG profiles
in making investment or voting decisions. A failure to comply with investor expectations and standards, which are evolving and vary considerably,
or the perception that we have not responded appropriately to the growing concern for ESG issues, could result in reputational harm to
our business and could have an adverse effect on us. To the extent ESG matters negatively impact our reputation, it may also negatively
impact our share price as well as our access to and cost of capital and impede our ability to compete as effectively to attract and retain
employees, which may adversely impact our operations.

Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.

Under current law, federal
net operating losses incurred in tax years beginning after December 31, 2017, may be carried forward indefinitely, but the
deductibility of such federal net operating losses is limited to 80% of taxable income. It is uncertain if and to what extent various
states will conform to federal tax laws. Under Sections 382 and 383 of the Code, and corresponding provisions of state law, if a corporation
undergoes an “ownership change” (generally defined as a greater than 50 percentage point change (by