Company: CERO
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001213900-25-011071
Chunk: 123

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-02-07
Form: 424B3
Chunk 123
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 we may incur
further significant additional costs associated with resolving the dispute in other jurisdictions, all of which could seriously harm
our business.

We will incur increased costs and demands upon management as a result of complying with the laws and regulations affecting public companies, which could adversely affect our business, results of operations, and financial condition.

As a public company, we
are subject to the reporting requirements of the Exchange Act, the listing standards of Nasdaq, and other applicable securities rules
and regulations. We expect that the requirements of these rules and regulations will continue to increase our legal, accounting and financial
compliance costs, make some activities more difficult, time-consuming and costly, and place significant strain on our personnel, systems
and resources. For example, the Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect
to our business and results of operations. As a result of the complexity involved in complying with the rules and regulations applicable
to public companies, our management’s attention may be diverted from other business concerns, which could harm our business, results
of operations and financial condition. Although we have already hired additional employees to assist us in complying with these requirements,
we may need to hire more employees in the future or engage outside consultants, which will increase our operating expenses.

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In addition, changing laws,
regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing
legal and financial compliance costs, and making some activities more time-consuming. These laws, regulations and standards are subject
to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest substantial resources
to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses
and a diversion of management’s time and attention from business operations to compliance activities. If our efforts to comply
with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related
to their application and practice, regulatory authorities may initiate legal proceedings against us and our business may be harmed.

We also expect that being
a public company and these new rules and regulations will make it more expensive for us to obtain director and officer liability insurance