Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 219

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 219
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 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 provide us with such digital assets, thereby reducing the
amount of digital assets we may hold as a result. While our custodians will carry insurance policies to cover losses for commercial crimes
and cyber and tech errors or omissions, the policy limits vary per provider and would be shared among all of their customers, and subject
to various limitations and exclusions (such as if a loss arises due to our failure to protect our login credentials and devices). The
insurance that covers losses of our bitcoin holdings may cover only a small fraction of the value of the entirety of our bitcoin holdings,
and there can be no guarantee that such insurance will be maintained as part of the custodial services we will have or that such coverage
will cover losses with respect to our bitcoin. Moreover, our use of custodians exposes us to the risk that the bitcoin our custodians
hold on our behalf could be subject to insolvency proceedings and we could be treated as a general unsecured creditor of the custodian,
inhibiting our ability to exercise ownership rights with respect to such bitcoin. Any loss associated with such insolvency proceedings
is unlikely to be covered by any insurance coverage we maintain related to our bitcoin.

57

Bitcoin is controllable only by the possessor of both the unique public
key and private key(s) relating to the local or online digital wallet in which the bitcoin is held. While the bitcoin blockchain
ledger requires a public key relating to a digital wallet to be published when used in a transaction, private keys must be safeguarded
and kept private in order to prevent a third party from accessing the bitcoin held in such wallet. To the extent the private key(s) for
a digital wallet are lost, destroyed