Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 94

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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, through various means, such as hacking, social engineering, phishing and fraud. Threats can come from a variety of
sources, including criminal hackers, hacktivists, state-sponsored intrusions, industrial espionage, and insiders. In addition, certain
types of attacks could harm us even if our systems are left undisturbed. For example, certain threats are designed to remain dormant or
undetectable, sometimes for extended periods of time, or until launched against a target and we may not be able to implement adequate
preventative measures. Further, there has been an increase in such activities due to the increase in work-from-home arrangements. The
risk of cyberattacks could also be increased by cyberwarfare in connection with the ongoing Russia-Ukraine and Israel-Hamas conflicts,
or other future conflicts, including potential proliferation of malware into systems unrelated to such conflicts. Any future breach of
our operations or those of others in the bitcoin industry, including third-party services on which we rely, could materially and adversely
affect our financial condition and results of operations.

We face risks relating to the custody of our bitcoin, including
the loss or destruction of private keys required to access our bitcoin and cyberattacks or other data loss relating to our bitcoin.

We will hold our bitcoin with regulated custodians that have duties
to safeguard our private keys. Our custodial services contracts will not restrict our ability to reallocate our bitcoin among our custodians,
and our bitcoin holdings may be concentrated with a single custodian from time to time. In
light of the significant amount of bitcoin we hold, we continually evaluate the need to engage additional custodians. Additional custodians
could achieve a greater degree of diversification in the custody of our bitcoin as the extent of potential risk of loss is dependent,
in part, on the degree of diversification. If there is a decrease in the availability of digital asset custodians that we believe can
safely custody our bitcoin, for example, custodians discontinue or limit their services in the United States, we may need to enter
into agreements that are less favorable than our currently anticipated agreements or take other measures to custody our bitcoin, and our
ability to seek a greater degree of diversification in the use of custodial services would be materially adversely affected. In addition,
holding our bitcoin with regulated custodians could affect the availability of receiving digital assets that may result from “forks”
of the bitcoin blockchain if our custodians are unable to support or otherwise