Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 10

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Item: Item 2.03
Chunk 10
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Research and development expenses decreased by $0.1 million, or 14%, to $0.4 million during the three months ended March 31, 2025 from
$0.5 million during the three months ended March 31, 2024. The decrease was driven primarily by the decrease in CRO and personnel costs
of $0.1 million as a result of the completion of several clinical studies and a reduction of personnel.

General and Administrative - 
General and administrative expenses increased by $0.2 million, or 19%, to $1.0 million during the three months ended March 31, 2025 from
$0.8 million during the three months ended March 31, 2024. The increase was driven primarily by the increase in accounting costs of $0.3
million as a result of increased audit fees, which was offset by a reduction in legal fees of $0.1 million as a result of legal fees being
incurred primarily on the merger transaction which are deferred offering costs and not part of general and administrative expenses.

Gain (Loss) on Change in the Fair
Value of Related Party Tasly Convertible Debt - Loss on change in the fair value of the Tasly Convertible Loan was $0.1 million
during the three months ended March 31, 2025, driven by the remeasurement of the Tasly Convertible Loans. There was no such loss during
the three months ended March 31, 2024, as the Tasly Convertible Loan had a revaluation gain during the prior year period of less than
$0.1 million.

Interest Expense - Interest
expense increased by $0.2 million, or 14%, to $1.2 million during the three months ended March 31, 2025 from $1.1 million during the three
months ended March 31, 2024. The increase was primarily due to the $2.0 million in additional senior notes that were issued.

Other Income (Expense) - 
Other income (expense) decreased by less than $0.1 million during the three months ended March 31, 2025.

Liquidity and Capital Resources

Sources of Liquidity

We incurred net losses and
negative operating cash flows from operations since inception, and we expect to continue to incur losses and negative operating cash flows
for the foreseeable future until we successfully commence sustainable commercial operations. To date, we have funded our operations primarily
with proceeds from the issuance