Company: CERO
Filing Date: 2025-11-20
Form Type: 424B3
Source: 0001213900-25-113117
Chunk: 119

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-20
Form: 424B3
Chunk 119
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 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 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