Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 323

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 323
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 has been no change in our internal control over financial reporting that has materially affected, or
is reasonably likely to materially affect, our internal control over financial reporting.

44

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may
become subject to various legal proceedings and claims that arise in the ordinary course of our business activities. Although the results
of litigation and claims cannot be predicted with certainty, as of September 30, 2025, we do not believe we are party to any claim or
litigation the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have
a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense
and settlement costs, diversion of management resources and other factors.

Item 1a. Risk Factors

Except as set forth below,
there have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024,
filed with the SEC on April 15, 2025. Any of these factors could result in a significant or material adverse effect on our results of
operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair
our business or results of operations.

Nasdaq has delisted our securities from
trading on Nasdaq, which could limit investors’ ability to make transactions in our securities and subject us to additional trading
restrictions.

On October 29, 2025, we received the determination
of the Nasdaq Hearings Panel (the “Panel”) to deny our request to continue the listing of our shares of common stock on Nasdaq
and that the trading in our securities would be suspended at the open of trading on October 31, 2025. We submitted a request for review
of the Panel’s decision by the Nasdaq Listing and Hearing Review Council. On October 31, 2025, we have since commenced trading
of our common stock on the OTC Pink Sheets.

As previously disclosed, we have not been in
compliance with the requirement set forth in Nasdaq Listing Rule 5550(b)(1) to maintain stockholders’ equity of at least $2.5 million
(the “Equity Rule”). In January 2025, a previous Nasdaq panel provided us with an extension until April 22, 2025 to obtain