Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 441

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part II, Item 1
Chunk 441
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 our common stock.

The broader digital assets industry is subject to counterparty risks,
which could adversely impact the adoption rate, price, and use of bitcoin. A series of recent high-profile bankruptcies, closures,
liquidations, regulatory enforcement actions and other events relating to companies operating in the digital asset industry, including
the filings for bankruptcy protection by Three Arrows Capital, Celsius Network, Voyager Digital, FTX Trading and Genesis Global Capital,
the closure or liquidation of certain financial institutions that provided lending and other services to the digital assets industry,
including Signature Bank and Silvergate Bank, SEC enforcement actions against Coinbase, Inc. and Binance Holdings Ltd., the placement
of Prime Trust, LLC into receivership following a cease-and-desist order issued by Nevada’s Department of Business and Industry,
and the filing and subsequent settlement of a civil fraud lawsuit by the New York Attorney General against Genesis Global Capital,
its parent company Digital Currency Group, Inc., and former partner Gemini Trust Company, have highlighted the counterparty risks applicable
to owning and transacting in digital assets. Although these bankruptcies, closures, liquidations and other events have not resulted in
any loss or misappropriation of our bitcoin, nor have such events adversely impacted our access to our bitcoin, they have, in the short-term,
likely negatively impacted the adoption rate and use of bitcoin. Additional bankruptcies, closures, liquidations, regulatory enforcement
actions or other events involving participants in the digital assets industry in the future may further negatively impact the adoption
rate, price, and use of bitcoin, limit the availability to us of financing collateralized by bitcoin, or create or expose additional counterparty
risks.

Changes in our ownership of bitcoin could have accounting, regulatory
and other impacts. While we currently plan to own bitcoin directly, we may investigate other potential approaches to owning bitcoin,
including indirect ownership (for example, through ownership interests in a fund that owns bitcoin). If we were to own all or a portion
of our bitcoin in a different manner, the accounting treatment for our bitcoin, our ability to use our bitcoin as collateral for additional
borrowings, and the regulatory requirements to which we are subject, may correspondingly change. For example, the volatile nature of bitcoin
may force us to liquidate our holdings to use it as collateral, which could be negatively affected by any disruptions in the crypto market
and, if liquidated, the value of the collateral would not reflect potential gains in the market value of bitcoin, all of which could negatively
a