Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 510

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part II, Item 1A
Chunk 510
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 any of their forked alternatives.

Furthermore, hard forks can lead to new security concerns. For instance,
when the Ethereum and Ethereum Classic networks split in July 2016, replay attacks, in which transactions from one network were rebroadcast
on the other network to achieve “double-spending,” plagued platforms that traded Ethereum through at least October 2016,
resulting in significant losses to some crypto asset platforms. Similar replay attacks occurred in connection with the bitcoin cash and
bitcoin cash SV network split in November 2018. Another possible result of a hard fork is an inherent decrease in the level of security
due to the splitting of some mining power across networks, making it easier for a malicious actor to exceed 50% of the mining power of
that network, thereby making crypto assets that rely on proof-of-work more susceptible to attack, as has occurred with Ethereum Classic.

We intend to recognize forked and airdropped assets consistent with
our custodians. We may not immediately or ever have the ability to withdraw a forked or airdropped bitcoin by virtue of bitcoins that
we hold with our custodians. Future forks may occur at any time. A fork can lead to a disruption of networks and our information technology
systems, cybersecurity attacks, replay attacks, or security weaknesses, any of which can further lead to temporary or even permanent loss
of our and our assets.

The due diligence procedures conducted by us and our liquidity
providers to mitigate transaction risk may fail to prevent transactions with a sanctioned entity.

We will execute trades through U.S.-based liquidity providers, and
rely on these third parties to implement controls and procedures to mitigate the risk of transacting with sanctioned entities. While we
expect our third party service providers to conduct their business in compliance with applicable laws and regulations and in accordance
with our contractual arrangements, there is no guarantee that they will do so. Accordingly, we are exposed to risk that our due diligence
procedures may fail. If we are found to have transacted in bitcoin with bad actors that have used bitcoin to launder money or with persons
subject to sanctions, we may be subject to regulatory proceedings and any further transactions or dealings in bitcoin by us may be restricted
or prohibited.

60

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On September 19, 2025, the Company issued 250,000 shares of common
stock to The Benchmark Company LLC and warrants to purchase 132,000 shares of common stock to designees of