Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 119

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 119
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” elsewhere in this
prospectus.

<div align='center'>63</div>

Our bitcoin treasury strategy exposes us to risk of non-performance by counterparties

Our bitcoin treasury strategy
exposes us to the risk of non-performance by counterparties, whether contractual or otherwise. Risk of non-performance includes inability
or refusal of a counterparty to perform because of a deterioration in the counterparty’s financial condition and liquidity or for
any other reason. For example, our execution partners, custodians, or other counterparties might fail to perform in accordance with the
terms of our agreements with them, which could result in a loss of bitcoin, a loss of the opportunity to generate funds, or other losses.

We expect our primary counterparty
risk with respect to our bitcoin will be custodian performance obligations under the various custody arrangements we enter into. A series
of recent high-profile bankruptcies, closures, liquidations, regulatory enforcement actions and other events relating to companies operating
in the digital asset industry, the closure or liquidation of certain financial institutions that provided lending and other services to
the digital assets industry, SEC enforcement actions against other providers, or placement into receivership or civil fraud lawsuit against
digital asset industry participants have highlighted the perceived and actual counterparty risk applicable to digital asset ownership
and trading. Legal precedent created in these bankruptcy and other proceedings may increase the risk of future rulings adverse to our
interests in the event one or more of our custodians becomes a debtor in a bankruptcy case or is the subject of other liquidation, insolvency
or similar proceedings.

While our custodians will be
subject to regulatory regimes intended to protect customers in the event of a custodial bankruptcy, receivership or similar insolvency
proceeding, no assurance can be provided that our custodially-held bitcoin will not become part of the custodian’s insolvency estate
if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings. Additionally, if we pursue any strategies
to create income streams or otherwise generate funds using our bitcoin holdings, we would become subject to additional counterparty risks.
We will need to carefully evaluate market conditions, including price volatility as well as service provider terms and market reputations
and performance, among others, prior to implementing any such strategy, all of which could effect our ability to successfully implement
and execute on any such future strategy. These risks, along with any significant non-performance by counterparties, including in particular
the custodian or custod