The bunny ears decrease in row 39 can be worked as follows: slip the first stitch knitwise, knit the second stitch but don't drop it from the left needle, psso, k2tog.
Work the kfb through the reversed back of loop as follows: slip the stitch knitwise and return to left needle (thus changing its orientation on the needle), then knit the stitch (through its new front) leaving the stitch on the needle, insert the right needle into the back of the stitch and slip it off without knitting it. Sounds complicated but is easy.
Shown with a cast-on count of 27 stitches.