Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 286

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 286
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 services to businesses
that hold bitcoin, provide bitcoin-related services or accept bitcoin as payment, which could also decrease the price of bitcoin. Similarly,
the open-source nature of the bitcoin blockchain means the contributors and developers of the bitcoin blockchain are generally not directly
compensated for their contributions in maintaining and developing the blockchain, and any failure to properly monitor and upgrade the
bitcoin blockchain could adversely affect the bitcoin blockchain and negatively affect the price of bitcoin.

The liquidity of bitcoin may also be impacted to the extent that changes
in applicable laws and regulatory requirements negatively impact the ability of exchanges and trading venues to provide services for bitcoin
and other digital assets.

Our historical financial statements do not reflect our acquisition
of bitcoin, the fact that our bitcoin holdings could be a substantial part of our assets, or the potential variability in earnings that
we may experience in the future relating to our bitcoin holdings.

Our historical financial statements do not reflect our intended acquisition
of bitcoin, that we intend for our bitcoin holdings to comprise most of our total assets, or the potential variability in earnings that
we may experience in the future from holding or selling significant amounts of bitcoin, given our expected asset concentration. The price
of bitcoin has historically been subject to dramatic price fluctuations and is highly volatile. We expect to determine the fair value
of our bitcoin based on quoted (unadjusted) prices on the Coinbase exchange, and following early adoption of ASU 2023-08, will be
required to measure our bitcoin holdings at fair value in our statement of financial position, and to recognize gains and losses from
changes in the fair value of our bitcoin in net income each reporting period, which may create significant volatility in our reported
earnings, amplified by our asset concentration in bitcoin, and decrease the carrying value of our digital assets, which in turn could
have a material adverse effect on the market price of our common stock. Conversely, any sale of bitcoins at prices above our carrying
value for such assets creates a gain for financial reporting purposes even if we would otherwise incur an economic or tax loss with respect
to such transaction, which also may result in significant volatility in our reported earnings.

Because we intend to purchase additional bitcoin in future periods
and increase our overall holdings of bitcoin, we expect that the proportion of our total assets that will be represented by our bitcoin
holdings will increase in the future. As a result, and in particular with respect to the quarterly periods and full fiscal year with respect
to which ASU 2023-08 will apply, and