Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 205

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 205
---
, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting
(as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

49

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

To the knowledge of our management team, there is no litigation currently
pending or contemplated against us, any of our officers or directors in their capacity as such, or against any of our property.

Item 1A. Risk Factors.

Except as set forth below, there have been no material changes from
the risk factors previously disclosed under the heading “Risk Factors” in the section “Risk Factors” in the Company’s
Registration Statement on Form S-4 (File No. 333-269417) initially filed with the SEC on January 1, 2023, as amended.

Risks Related to our Bitcoin Treasury Strategy and Holdings

Our bitcoin treasury strategy exposes us to various risks associated
with Bitcoin.

Our bitcoin treasury strategy exposes us to various risks associated
with bitcoin, including the following:

Bitcoin is a highly volatile asset. Bitcoin is a highly
volatile asset that has traded below $53,000 per Bitcoin and above $123,000 per bitcoin on the Coinbase exchange in the 12 months
preceding the date of this Report. The trading price of bitcoin significantly decreased during prior periods, and such declines may occur
again in the future. We intend to engage in hedging strategies from time to time as part of our treasury management operations if deemed
appropriate. As of September 30, 2025, the Company had purchased $1.0 million of Bitcoin as part of the Company’s ongoing treasury
strategy, representing 8.53 Bitcoins.  The Company purchased another 7.98 Bitcoins for $1.0 million in October 2025.

Bitcoin does not pay interest or dividends. Bitcoin does
not pay interest or other returns and we can only generate cash from our bitcoin holdings if we sell our bitcoin or implement strategies
to create income streams or otherwise generate cash by using our bitcoin holdings. Even if we pursue any such strategies, we may be unable
to create income streams or otherwise generate cash from our bitcoin holdings, and