Company: CERO
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001213900-25-079898
Chunk: 220

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 10-Q
Item: Item 8
Chunk 220
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 Financial Officer, as appropriate to allow timely decisions regarding
required disclosure.

Evaluation of Disclosure
Controls and Procedures

The Company’s Principal
Executive Officer and Principal Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures
as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the certifying officers
concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were not effective
due to the existence of material weaknesses in internal control over financial reporting.

Material Weaknesses Identified

The material weaknesses identified
include:

●A
lack of sufficient personnel with appropriate technical accounting expertise and experience in U.S. GAAP and SEC reporting requirements;

●Inadequate
processes for assessing and accounting for the impact of preferred stock conversions, including the failure to properly evaluate embedded
features and related classification and measurement considerations; and

●Deficiencies
in the initial recognition and valuation of investments in equity securities, including insufficient documentation and analysis supporting
fair value determinations.

These control deficiencies
have resulted in the Company’s inability to timely file periodic reports and have led to errors in the initial accounting treatment
of complex financial instruments.

Remediation Plan

Management is actively developing
a remediation plan to address these material weaknesses. The plan includes:

●Recruiting additional qualified accounting personnel
with expertise in financial reporting and complex financial instruments;

●Engaging third-party consultants to assist with
technical accounting matters; and

●Implementing enhanced financial reporting systems
and internal controls.

Execution of this remediation plan is contingent upon the availability
of adequate financial resources.

Changes
in Internal Control Over Financial Reporting

During
the most recently completed fiscal quarter, there 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.

40

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 June 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