Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1661

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1661
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 which may adversely affect
our future profitability.

Our business could be negatively impacted
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.

70

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. In addition, investor or regulatory
expectations for ESG practices may change materially as a result of the change in presidential administration and executive orders issued
thereby restricting the implementation of diversity, equity and inclusion programs and we may be unable to adapt to such changes in a
timely manner and/or without substantial cost.

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