Company: CERO
Filing Date: 2025-08-22
Form Type: 424B3
Source: 0001213900-25-080017
Chunk: 97

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-08-22
Form: 424B3
Chunk 97
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 first taxable year beginning after December 31, 2024, or (ii) ratably over the two-taxable year period beginning with the first taxable year beginning after December 31, 2024. In addition, it is uncertain if and to what extent various states will conform to federal tax laws. Future tax reform legislation could have a material impact on the value of our deferred tax assets, could result in significant one-time charges, and could increase our future U.S. tax expense.

We have identified a material weaknesses in our internal control over financial reporting. If our remediation of such material weaknesses is not effective, or if we identify additional material weaknesses in the future or otherwise fail to develop and maintain effective internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable laws and regulations could be impaired.

We are required, pursuant
to Section 404, to furnish a report by management on, among other things, the effectiveness of our internal controls over financial reporting.
In 2026, five years after our Initial Public Offering, we may be required to comply with auditor attestation requirements, as required
by Section 404. This will require that we incur substantial additional professional fees and internal costs to expand our accounting and
finance functions and that we expend significant management efforts.

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In preparing each of our
consolidated financial statements for the fiscal year ended December 31, 2024 and the accompanying consolidated financial statements for
the three and six months ended June 30, 2025 and related comparison periods, we identified material weaknesses in our system of internal
financial and accounting controls and procedures, as defined in the SEC guidelines for public companies. The material weaknesses identified
relate to our conclusion that due to a lack of sufficient and qualified resources, we lack effective processes and controls to ensure
the accuracy and completeness of our financial statements, including processes for assessing and accounting for the impact of preferred
stock conversions and deficiencies in the recognition and valuation of investments in equity securities. A material weakness is a deficiency,
or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented or detected and corrected on a timely basis. As a result
of the material weakness identified in connection with the preparation of the accompanying financial statements, we were unable to file
this Quarterly Report on Form 10-Q in a timely manner. Effective internal controls are necessary