Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 224

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 224
---
 to the correct naming convention for forked crypto assets. Due to the lack of a central registry
or rulemaking body, no single entity has the ability to dictate the nomenclature of forked crypto assets, causing

disagreements and a lack of uniformity among platforms on the nomenclature
of forked crypto assets, and which results in further confusion to customers as to the nature of assets they hold on platforms, and which
can negatively impact the value of the crypto assets. In addition, several of these forks were contentious and as a result, participants
in certain communities may harbor ill will towards other communities. As a result, certain community members may take actions that adversely
impact the use, adoption, and price of bitcoin, or any of their forked alternatives.

Furthermore, hard forks can lead to new security concerns. For instance,
when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions from one network were rebroadcast
on the other network to achieve “double-spending,” plagued platforms that traded Ethereum through at least October 2016,
resulting in significant losses to some crypto asset platforms. Similar replay attacks occurred in connection with the bitcoin cash and
bitcoin cash SV network split in November 2018. Another possible result of a hard fork is an inherent decrease in the level of security
due to the splitting of some mining power across networks, making it easier for a malicious actor to exceed 50% of the mining power of
that network, thereby making crypto assets that rely on proof-of-work 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