Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 96

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 96
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 and could adversely affect the market price of bitcoin and the market price of our common stock.

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company
generally will be deemed to be an “investment company” for purposes of the 1940 Act if (1) it is, or holds itself out
as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or (2) it
engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and it owns or proposes
to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities
and cash items) on an unconsolidated basis. We do not believe that we are an “investment company,” as such term is defined
in the 1940 Act, and are not registered as an “investment company” under the 1940 Act as of the date of this Report.

While senior SEC officials have stated their view that bitcoin is not
a “security” for purposes of the federal securities laws, a contrary determination by the SEC could lead to our classification
as an “investment company” under the 1940 Act, if the portion of our assets consists of investments in bitcoins exceeds 40%
safe harbor limits prescribed in the 1940 Act, which would subject us to significant additional regulatory controls that could have a
material adverse effect on our business and operations and may also require us to change the manner in which we conduct our business.

We monitor our assets and income for compliance under the 1940 Act
and seek to conduct our business activities in a manner such that we do not fall within its definitions of “investment company”
or that we qualify under one of the exemptions or exclusions provided by the 1940 Act and corresponding SEC regulations. If bitcoin is
determined to constitute a security for purposes of the federal securities laws, we would take steps to reduce the percentage of bitcoins
that constitute investment assets under the 1940 Act. These steps may include, among others, selling bitcoins that we might otherwise
hold for the long term and deploying our cash in non-investment assets, and we may be forced to sell our bitcoins at unattractive prices.
We may also seek to acquire additional non-investment assets to maintain compliance with the 1940 Act,