Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 333

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 3
Chunk 333
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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 any such strategies may subject us to additional risks.

Our bitcoin holdings may significantly impact our financial results
and the market price of our common stock. Our bitcoin holdings may significantly affect our financial results and if we continue
to increase our overall holdings of bitcoin in the future, they will have an even greater impact on our financial results and the market
price of our common stock. See “— Our historical financial statements do not reflect our acquisition of bitcoin, the
fact that our bitcoin holdings will be the substantial majority of our assets, or the potential variability in earnings that we may experience
in the future relating to our bitcoin holdings” below.

Our bitcoin treasury strategy has not been tested over an extended
period of time or under different market conditions. We will be using the proceeds from the ELOC to facilitate the recent adoption
our bitcoin treasury strategy and we will need to continually examine the risks and rewards of this new strategy. This new strategy has
not been tested over an extended period of time or under different market conditions. For example, although we believe bitcoin, due to
its limited supply, has the potential to serve as a hedge against inflation in the long term, the short-term price of bitcoin declined
in recent periods during which the inflation rate increased. Some investors and other market participants may disagree with our bitcoin
treasury strategy or actions we undertake to implement it. If bitcoin prices were to decrease or our bitcoin treasury strategy otherwise
proves unsuccessful, our financial condition, results of operations, and the market price of our common stock could be materially adversely