Company: CERO
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044335
Chunk: 187

Company: CERO THERAPEUTICS HOLDINGS, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 4
Chunk 187
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 of such countries have also created economic uncertainty and disruptions in the capital markets. There have also been
disruptions to the U.S. banking system due to bank failures in the past several years, including with respect to Silicon Valley Bank,
Signature Bank and First Republic Bank. Any such volatility and disruptions may have adverse consequences on us or the third parties on
whom we rely. If the equity and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary
debt or equity financing more difficult to obtain in a timely manner or on favorable terms, more costly or more dilutive. Increased inflation
rates can adversely affect us by increasing its costs, including labor and employee benefit costs. In addition, higher inflation could
also increase customers’ operating costs, which could result in reduced budgets for customers and potentially less demand for our
products, if and when approved. Any significant increases in inflation and related increase in interest rates could have a material adverse
effect on our business, results of operations and financial condition.

Recently there have
been significant changes to U.S. trade policies, sanctions, legislation, treaties and tariffs, including, but not limited to, trade
policies and tariffs affecting products from outside of the U.S. For example, in early 2025, the U.S. imposed blanket 10% tariffs on
virtually all imports to the U.S. and significantly higher tariffs applicable to imports from many countries, plus tariffs on
specific goods of between 7.5% and 100%, which have resulted in other countries imposing additional tariffs on imports from the
U.S., and actions by the U.S. are likely to continue to result in retaliatory responses. On April 9, 2025, the U.S. announced a
temporary pause on its tariffs applicable to many countries but has stated that it might continue to broadly impose tariffs, which
could lead to corresponding punitive actions by the countries with which the U.S. trades. President Trump also has said that he was
considering tariffs of 25% or more on pharmaceutical and other products. He indicated that such tariff rates might increase
substantially over the course of the year to allow manufacturers a phase-in period to allow potential on-shoring of manufacturing.
It is unclear at this time whether and to what extent such tariffs will take place, or how affected countries may react.
Historically, tariffs have led to increased trade and political tensions. In response to tariffs, other countries have implemented
retaliatory