Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 223

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 223
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 could have a material adverse effect on our business, prospects, financial
condition, and operating results.

If bitcoin is determined to constitute a security for purposes of the
federal securities laws, the additional regulatory restrictions imposed by such a determination could adversely affect the market price
of bitcoin and in turn adversely affect the market price of our common stock. See “Risk Factors — Regulatory
change reclassifying bitcoin as a security could lead to our classification as an “investment company” under the Investment
Company Act of 1940, as amended, or the 1940 Act, and could adversely affect the market price of bitcoin and the market price
of our common stock” above. Moreover, the risks of us engaging in a bitcoin treasury strategy could create complications due
to the lack of 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