Company: CERO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112619
Chunk: 105

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 105
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 Equity Rule.

We have submitted a request
for review of the Staff’s decision by the Nasdaq Listing and Hearing Review Council (the “Council”). We have also commenced
the process of seeking to trade our shares of common stock on the OTC Markets. Currently, we are trading on the OTC Pink Sheets. . However,
we can provide no assurance that the review by the Council will result in the continued listing of our shares of common stock or that
the shares of common stock will be admitted for trading on the OTC Markets. The OTC Markets also are a less liquid market than Nasdaq,
which may have a material adverse effect on the trading price and volume for the common stock. We are also considering listing alternatives,
including applying to list our shares of common stock on another securities exchange.

The delisting of our securities by Nasdaq could
adversely affect the trading market for our securities, as price quotations may not be as readily obtainable, which would likely have
a material adverse effect on the market price of our securities and the Company’s ability to raise additional capital.

Moreover, we can provide no assurance that trading
in our securities will continue over the counter or otherwise. As a result of the delisting, we could face significant material adverse
consequences, including:

●a limited availability of market quotations for our securities;

●reduced liquidity with respect to our securities;

45

●a determination that our shares of common stock are “penny
stock”, which will require brokers trading in our shares of common stock to adhere to more stringent rules, possibly resulting
in a reduced level of trading activity in the secondary trading market for our shares of common stock;

●a limited amount of news and analyst coverage for our company;
and

●a decreased ability to issue additional securities or obtain
additional financing, including pursuant to the Fifth Securities Purchase Agreement, the July 2025 Keystone Purchase Agreement, or otherwise,
in the future.

The National Securities
Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities,
which are referred to as “covered securities.” Because they have been delisted, our securities would not be covered securities
and we would be subject to regulation in each state in which we offer our securities. This state level regulation introduces additional
compliance requirements for brokers to consider making markets in our securities and will further negatively impact any trading liquidity
in our securities.

We may pursue orphan drug designation for
certain