Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 290

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 290
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 all. For example, a number of bitcoin trading venues temporarily halted deposits
and withdrawals in 2022. As a result, our bitcoin holdings may not be able to serve as a source of liquidity for us to the same extent
as cash and cash equivalents. Further, bitcoin we hold with our custodians and transact with our trade execution partners does not enjoy
the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation by the
Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Additionally, we may be unable to enter into
term loans or other capital raising transactions collateralized by our unencumbered bitcoin or otherwise generate funds using our bitcoin
holdings, including in particular during times of market instability or when the price of bitcoin has declined significantly. If we are
unable to sell our bitcoin, enter into additional capital raising transactions using bitcoin as collateral, or otherwise generate funds
using our bitcoin holdings, or if we are forced to sell our bitcoin at a significant loss, in order to meet our working capital requirements,
our business and financial condition could be negatively impacted.

If we or our third-party service providers experience a security
breach or cyberattack and unauthorized parties obtain access to our bitcoin, or if our private keys are lost or destroyed, or other similar
circumstances or events occur, we may lose some or all of our bitcoin and our financial condition and results of operations could be materially
adversely affected.

Substantially all of the bitcoin we will own will be held in custody
accounts at U.S.-based institutional-grade digital asset custodians. Security breaches and cyberattacks are of particular concern with
respect to our bitcoin. Bitcoin and other blockchain-based cryptocurrencies and the entities that provide services to participants in
the bitcoin ecosystem have been, and may in the future be, subject to security breaches, cyberattacks, or other malicious activities.
For example, in October 2021 it was reported that hackers exploited a flaw in the account recovery process and stole from the accounts
of at least 6,000 customers of the Coinbase exchange, although the flaw was subsequently fixed and Coinbase reimbursed affected customers.
Similarly, in November 2022, hackers exploited weaknesses in the security architecture of the FTX Trading digital asset exchange
and reportedly stole over $400 million in digital assets from customers. A successful security breach or cyberattack could result
in:

●a partial or total loss of our bitcoin in a manner that may
not be covered by insurance