Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 104

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 104
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 insolvency proceedings. Any such outcome could have a material adverse effect on our financial condition and the market price of
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,