Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 335

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 335
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49

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 nine months ended September 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 for us to provide
reliable financial reports and prevent fraud. We continue to evaluate steps to remediate the material weakness. These remediation measures
may be time consuming and costly and there is no assurance that these initiatives will ultimately have the intended effects.

Our control over financial
reporting will not prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide
only reasonable, not absolute, assurance that the control system’s objectives will be met. Because of the inherent limitations
in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur
or that all control issues and instances of fraud will be detected. We cannot assure you that the measures we have taken to date, or
any measures we may take in the future, will be sufficient to avoid potential future material weaknesses.

Any failure to maintain
internal control over financial reporting could severely inhibit our ability to accurately report our financial condition, results of
operations or cash flows. If our financial statements are not accurate, investors may not have a complete understanding of our operations.
If we do not file financial statements on a timely basis as required by the SEC, we could face severe consequences. If we are unable
to conclude that our internal control over financial reporting is effective, investors