Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 84

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 our adoption will require us to measure in-scope crypto assets (including our bitcoin holdings) at fair value in our statement of
financial position, and to recognize gains and losses from changes in the fair value of our bitcoin in net income each reporting period.
ASU 2023-08 will also require us to provide certain interim and annual disclosures with respect to our bitcoin holdings. Due to the volatility
in the price of bitcoin, the adoption of ASU 2023-08 could have a material impact on our financial results in future periods, increase
the volatility of our financial results, affect the carrying value of our bitcoin on our balance sheet, and could result in tax-related
adjustments, which in turn could have a material adverse effect on our financial results and the market price of our common stock.

51

The broader digital assets industry, including the technology associated
with digital assets, the rate of adoption and development of, and use cases for, digital assets, market perception of digital assets,
and the legal, regulatory, and accounting treatment of digital assets are constantly developing and changing, and there may be additional
risks in the future that are not possible to predict.

Bitcoin is a highly volatile asset, and fluctuations in the price
of bitcoin are likely to influence our financial results and the market price of our common stock.

Bitcoin is a highly volatile asset, and fluctuations in the price of
bitcoin are likely to influence our financial results and the market price of our common stock. Our financial results and the market price
of our common stock would be adversely affected, and our business and financial condition would be negatively impacted, if the price of
bitcoin decreased substantially (as it has in the past, such as during 2022), including as a result of:

●decreased user and investor confidence in bitcoin, including
due to the various factors described herein;

●investment and trading activities, such as (i) trading activities
of highly active retail and institutional users, speculators, miners and investors, (ii) actual or expected significant dispositions
of bitcoin by large holders, and (iii) actual or perceived manipulation of the spot or derivative markets for bitcoin or spot bitcoin
exchange-traded products;

●negative publicity, media or social media coverage, or sentiment
due to events in or relating to, or perception of, bitcoin or the broader digital assets industry, for example, (i) public perception
that bitcoin can be used as a vehicle to circumvent sanctions, including sanctions imposed on Russia or certain regions related