Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 209

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 209
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 complying with these obligations requires significant resources and may
necessitate changes to our information technologies, systems and practices, as well as those of any third-party collaborators, service
providers, contractors, consultants or other third parties that process personal data on our behalf.

Although we endeavor to comply
with all applicable privacy and security obligations, we may at times fail to do so or may be perceived to have failed to do so. Moreover,
despite our efforts, we may not be successful in achieving compliance if our employees, third-party collaborators, service providers,
contractors or consultants fail to comply with such obligations, which could negatively impact our business operations and compliance
posture. For example, any failure by a third-party service provider to comply with applicable law, regulations, or contractual obligations
could result in adverse effects, including inability to or interruption in our ability to operate our business and proceedings against
us by governmental entities or others. If we fail, or are perceived to have failed, to address or comply with obligations related to data
privacy and security obligations, we could face significant consequences. These consequences may include, but are not limited to, government
enforcement actions (e.g., investigations, fines, penalties, audits and inspections, and similar); litigation (including class-related
claims); additional reporting requirements and/or oversight; temporary or permanent bans on all or some processing of personal data; orders
to destroy or not use personal data; and imprisonment of company officials. Any of these events could have a material adverse effect on
our reputation, business, or financial condition.

Regulators and legislators
in the U.S. are increasingly scrutinizing and restricting certain personal data transfers and transactions involving foreign countries.
For example, Executive Order 14117 of February 28, 2024, Preventing Access to Americans’ Bulk Sensitive Personal Data and United
States Government-Related Data by Countries of Concern, as implemented by U.S. Department of Justice, prohibits data brokerage transactions
involving certain sensitive personal data categories, including health data, genetic data, and biospecimens, to countries of concern,
including China. The regulations also restrict certain investment agreements, employment agreements and vendor agreements involving such
data and countries of concern, absent specified cybersecurity controls. Actual or alleged violations of these regulations may be punishable
by criminal and/or civil sanctions, and may result in exclusion from participation in federal and state programs.

Like many companies,
we may use artificial intelligence and machine learning (AI) technologies, including generative AI, to efficiently grow and