Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1699

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1699
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 and regulations could be impaired.

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 Initial Public Offering, 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.

In preparing our accompanying
consolidated financial statements, we identified a material weakness in our system of internal financial and accounting controls and procedures,
as defined in the SEC guidelines for public companies. The material weakness identified relates to our conclusion that due to a lack of
sufficient and qualified resources, we lack effective processes and controls to ensure the accuracy and completeness of our financial
statements. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that
there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or
detected and corrected on a timely basis. Effective internal controls are necessary for us to provide reliable financial reports and prevent
fraud. We continue to evaluate steps to remediate the material weakness. These remediation measures may be time consuming and costly and
there is no assurance that these initiatives will ultimately have the intended effects.

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. We cannot assure you that the measures we have taken to date, or any measures we may take in the future, will be sufficient
to avoid potential future material weaknesses.

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 we
do not file financial statements on a timely basis as required by the SEC, we could face severe consequences. If we are unable to conclude
that its internal control over financial reporting is effective, investors may lose confidence in the accuracy