Company: CERO
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032134
Chunk: 2423

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 2423
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 Our internal control over financial reporting includes those policies and
procedures that:

(1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company;

(2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with GAAP, and that
our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

(3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect
on the consolidated financial statements.

Because of its inherent limitations,
internal control over financial reporting may not prevent or detect errors or misstatements in our consolidated financial statements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate. Management assessed the effectiveness
of our internal control over financial reporting at December 31, 2024. In making these assessments, management used the criteria set forth
by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control - Integrated Framework (2013). Based on our
assessments and those criteria, management concluded that our internal control over financial reporting was not effective as of December
31, 2024 as a result of the material weakness in internal control over financial reporting as described below.

Our certifying officers concluded that the Company lacks effective
processes and controls to ensure the accuracy and completeness of its financial statements due to the lack of sufficient and qualified
resources. This material weakness led to the Company consistently failing to meet contractual deadlines for filing its financial statements.
In order to remediate the material weakness, the Company plans to hire additional qualified accounting personnel when the Company
has the financial resources to support such expenses, as well as engage consultants and purchase software licenses, if, and to the extent,
that the Company has sufficient financial resources for such additional expenses.

Management continues to evaluate
its plan to remediate the material weakness, which will not be considered remediated until management designs and implements effective
controls that operate for a sufficient period of time and management has concluded, through testing, that these controls are effective.

This Annual Report does not
include an attestation report of our independent registered public accounting firm due to our status as an emerging growth company under
the JOBS Act.

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