Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 1657

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 1657
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 compliance efforts, and increase legal risk
and compliance costs for us and the third parties upon whom we rely. Moreover, some states, such as Washington, Nevada and Connecticut,
adopted legislation protecting consumer health information specifically. Washington’s My Health My Data Act, which is now in effect,
features a private right of action, heightening noncompliance risks.

Outside the United States,
there are an increasing number of laws, regulations and industry standards concerning privacy, data protection, information security and
cross-border personal data transfers. For example, GDPR, UK GDPR, and China’s Personal Information Protection Law impose strict
requirements for processing personal data. Failure to comply with the requirements of the GDPR and the applicable national data protection
laws of the European Union Member States may result in fines of up to €20,000,000 or up to 4% of the total worldwide annual turnover
of the preceding financial year, whichever is higher, other administrative penalties, and private litigation related to processing of
personal data brought by classes of data subjects or consumer protection organizations authorized at law to represent their interests.
If we cannot implement a valid compliance mechanism for cross-border data transfers, we may face increased exposure to regulatory actions,
substantial fines, and injunctions against processing or transferring personal data from Europe or other foreign jurisdictions. The inability
to import personal data to the United States could significantly and negatively impact our business operations, including by limiting
our ability to conduct clinical trial activities in Europe and elsewhere; limiting our ability to collaborate with parties that are subject
to such cross-border data transfer or localization laws; or requiring us to increase our personal data processing capabilities and infrastructure
in foreign jurisdictions at significant expenses. European regulators have also ordered certain companies to suspend or permanently cease
certain transfers out of Europe for allegedly violating the GDPR’s cross-border data transfer limitations.

In addition, privacy advocates
and industry groups have proposed, and may propose, standards with which we are legally or contractually bound to comply. We are also
bound by contractual obligations related to data privacy and security, and our efforts to comply with such obligations may not be successful.
If any of our privacy policies or related materials or statements are found to be deficient, lacking in transparency, deceptive, unfair,
or misrepresentative of our practices, we may be subject to investigation, enforcement actions by regulators or other adverse consequences.

68

Our obligations related to
data privacy and security are quickly changing in an increasingly stringent fashion, creating some uncertainty as to the effective future
legal framework. Additionally, these