Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 99

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 experience that third parties have with companies engaging in such a strategy, such as increased costs of director and
officer liability insurance or the potential inability to obtain such coverage on acceptable terms in the future.

59

A temporary or permanent blockchain “fork” to bitcoin
or other crypto assets could adversely affect our business.

Blockchain protocols, including bitcoin, are open source. Any user
can download the software, modify it, and then propose that bitcoin or other blockchain protocols users and miners adopt the modification.
When a modification is introduced and a substantial majority of users and miners consent to the modification, the change is implemented
and the bitcoin or other blockchain protocol networks, as applicable, remain uninterrupted. However, if less than a substantial majority
of users and miners consent to the proposed modification, and the modification is not compatible with the software prior to its modification,
the consequence would be what is known as a “fork”, i.e., “split” of the impacted blockchain protocol
network and respective blockchain, with one prong running the pre-modified software and the other running the modified software. The effect
of such a fork would be the existence of two parallel versions of the bitcoin or other blockchain protocol network, as applicable, running
simultaneously, but with each split network’s crypto asset lacking interchangeability. A “hard fork” — where
there is disagreement among the users about the rules of the network — can have a significant negative impact on value
of the crypto asset.

The bitcoin has been subject to “forks” that resulted in
the creation of new networks, including bitcoin cash ABC, bitcoin cash SV, bitcoin diamond, bitcoin gold and others. Some of these forks
have caused fragmentation among platforms as to the correct naming convention for forked crypto assets. Due to the lack of a central registry
or rulemaking body, no single entity has the ability to dictate the nomenclature of forked crypto assets, causing

disagreements and a lack of uniformity among platforms on the nomenclature
of forked crypto assets, and which results in further confusion to customers as to the nature of assets they hold on platforms, and which
can negatively impact the value of the crypto assets. In addition, several of these forks were contentious and as a result, participants
in certain communities may harbor ill will towards other communities. As a result, certain community members may take actions that adversely
impact the use, adoption, and price of bitcoin, or any of their forked alternatives.

Furthermore, hard