Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1625

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1625
---
 or compromise, or are perceived to have experienced
a security incident or compromise, we may also experience adverse consequences.

49

Our internal computer systems
and those of our CROs, CDMOs, collaborators, contractors, consultants or other third parties are vulnerable to damage from computer viruses,
unauthorized access, cybersecurity threats, and telecommunication and electrical failures. In addition, as many of our personnel work
from home at least part of the time and utilize network connections outside our premises, this poses increased risks to our information
technology systems and data. Cyberattacks, malicious internet-based activity, and online and offline fraud are prevalent and are increasing
in their frequency, sophistication and intensity, and have become increasingly difficult to detect. These threats come from a variety
of sources, including traditional computer “hackers,” “hacktivists,” organized criminal threat actors, threat
actors, personnel (such as through theft or misuse), sophisticated nation-states, and nation-state-supported actors. Some actors now engage
and are expected to continue to engage in cyber-attacks, including without limitation nation-state actors for geopolitical reasons and
in conjunction with military conflicts and defense activities. During times of war and other major conflicts, we, and the third parties
upon which we rely, may be vulnerable to a heightened risk of these attacks, including retaliatory cyber-attacks, that could materially
disrupt our systems and operations, supply chain, and ability to produce and distribute our product candidates. We and the third parties
upon which we rely are subject to a variety of evolving threats, including social-engineering attacks (including through phishing attacks),
malicious code (such as viruses and worms), malware (including as a result of advanced persistent threat intrusions), denial-of-service
(such as credential stuffing), credential harvesting, social engineering attacks (including through phishing attacks), viruses, ransomware,
supply chain attacks, personnel misconduct or error and other similar threats. We may also be the subject of software bugs, server malfunction,
software or hardware failures, loss of data or other information technology assets, adware, telecommunications failures or other similar
issues. In particular, ransomware attacks are becoming increasingly prevalent and severe and can lead to significant interruptions, delays,
or outages in our operations, disruptions to our clinical trials, loss of data (including data related to clinical trials), significant
expense to restore data or systems, reputational loss and the diversion of funds. Extortion payments may alleviate the negative impact
of a ransomware attack, but we may be unwilling