Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 400

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 4
Chunk 400
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 adversely
affect our financial condition and results of operations.

We face risks relating to the custody of our bitcoin, including
the loss or destruction of private keys required to access our bitcoin and cyberattacks or other data loss relating to our bitcoin.

We will hold our bitcoin with regulated custodians that have duties
to safeguard our private keys. Our custodial services contracts will not restrict our ability to reallocate our bitcoin among our custodians,
and our bitcoin holdings may be concentrated with a single custodian from time to time. In
light of the significant amount of bitcoin we hold, we continually evaluate the need to engage additional custodians. Additional custodians
could achieve a greater degree of diversification in the custody of our bitcoin as the extent of potential risk of loss is dependent,
in part, on the degree of diversification. If there is a decrease in the availability of digital asset custodians that we believe can
safely custody our bitcoin, for example, custodians discontinue or limit their services in the United States, we may need to enter
into agreements that are less favorable than our currently anticipated agreements or take other measures to custody our bitcoin, and our
ability to seek a greater degree of diversification in the use of custodial services would be materially adversely affected. In addition,
holding our bitcoin with regulated custodians could affect the availability of receiving digital assets that may result from “forks”
of the bitcoin blockchain if our custodians are unable to support or otherwise provide us with such digital assets, thereby reducing the
amount of digital assets we may hold as a result. While our custodians will carry insurance policies to cover losses for commercial crimes
and cyber and tech errors or omissions, the policy limits vary per provider and would be shared among all of their customers, and subject
to various limitations and exclusions (such as if a loss arises due to our failure to protect our login credentials and devices). The
insurance that covers losses of our bitcoin holdings may cover only a small fraction of the value of the entirety of our bitcoin holdings,
and there can be no guarantee that such insurance will be maintained as part of the custodial services we will have or that such coverage
will cover losses with respect to our bitcoin. Moreover, our use of custodians exposes us to the risk that the bitcoin our custodians
hold on our behalf could be subject to insolvency proceedings and we could be treated as a general unsecured creditor of the custodian,
inhib