Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 352

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 3
Chunk 352
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 more susceptible to attack, as has occurred with Ethereum Classic.

We intend to recognize forked and airdropped assets consistent with
our custodians. We may not immediately or ever have the ability to withdraw a forked or airdropped bitcoin by virtue of bitcoins that
we hold with our custodians. Future forks may occur at any time. A fork can lead to a disruption of networks and our information technology
systems, cybersecurity attacks, replay attacks, or security weaknesses, any of which can further lead to temporary or even permanent loss
of our and our assets.

The due diligence procedures conducted by us and our liquidity
providers to mitigate transaction risk may fail to prevent transactions with a sanctioned entity.

We will execute trades through U.S.-based liquidity providers, and
rely on these third parties to implement controls and procedures to mitigate the risk of transacting with sanctioned entities. While we
expect our third party service providers to conduct their business in compliance with applicable laws and regulations and in accordance
with our contractual arrangements, there is no guarantee that they will do so. Accordingly, we are exposed to risk that our due diligence
procedures may fail. If we are found to have transacted in bitcoin with bad actors that have used bitcoin to launder money or with persons
subject to sanctions, we may be subject to regulatory proceedings and any further transactions or dealings in bitcoin by us may be restricted
or prohibited.

60

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On September 19, 2025, the Company issued 250,000 shares of common
stock to The Benchmark Company LLC and warrants to purchase 132,000 shares of common stock to designees of H.C. Wainwright & Co.,
in satisfaction of transaction costs incurred in connection with the Business Combination we completed on July 11, 2025. The warrants
are exercisable for a period of seven years from issuance at an exercise price of $0.01 per warrant.

The issuances of the shares and warrants described above were issued
in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated
under the Securities Act.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the period covered by this Quarterly Report, none of the Company’s
directors or executive officers have adopted or terminated a Rule