Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 73

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 73
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 controls and procedures (as defined in Rules 13a-15(e)
and 15d-15(e) under the Exchange Act) were not effective as of March 31, 2025.

Our certifying officers concluded
that the Company lacks effective processes and controls to ensure the accuracy and completeness of its financial statements due to the
lack of sufficient and qualified resources. This material weakness led to the Company consistently failing to meet contractual deadlines
for filing its financial statements. In order to remediate the material weakness, the Company plans to hire additional qualified
accounting personnel when the Company has the financial resources to support such expenses, as well as engage consultants and purchase
software licenses, if, and to the extent, that the Company has sufficient financial resources for such additional expenses.

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.

39

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 March 31, 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 can have an adverse impact on us because of defense and settlement costs, diversion of
management resources and other factors.

Item 1a. Risk Factors

Except as set forth below, there have been no
material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the
SEC on April 15, 2025. Any of these factors could result in a significant or material adverse effect on our results of operations or financial
condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results
of operations.

The issuance of shares of our Common Stock
upon conversion or exercise of our outstanding Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D
Preferred Stock, Common Warrants and other securities that we may issue in future financing transactions may result