Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 51

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 ELOC and issues shares, it recognizes
the proceeds in equity. The amount recorded is based on the fair value of the shares issued or the cash received, whichever is more reliably
measurable.  The Company records the actual cash received for each draw, as this is clearly measurable and traceable.

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Note 9 — Stock Option Plan

In 2010, Legacy Profusa adopted the 2010 Equity Incentive Plan (the
“Plan”) under which 2,000,000 shares of the Company’s Common Stock have been initially reserved for issuance to employees,
directors and consultants. The number of reserved shares that had been increased over the years equaled 4,636,454 shares at the time of
the Business Combination. The Company is currently drafting a new 2025 Equity Incentive Plan that will replace the 2010 Equity Incentive
Plan. All previously issued options under the 2010 Equity Incentive plan will be held under the new plan, with no additional impact to
the option holders. Options granted under the Plan may be either incentive stock options (“ISO”) or nonqualified stock options
(“NSO”). ISOs may be granted only to Company employees, including officers and directors who are also employees. NSOs may
be granted to Company employees, consultants and advisors.

Upon the Closing, all outstanding Legacy Profusa options converted
into options exercisable for shares of Company Common Stock with the same terms except for the number of shares exercisable and the exercise
price, each of which was adjusted using the Exchange Ratio of approximately $0.346. The mechanism of conversion resulted in the fair value
of each option prior to the Closing equal to the fair value of each option after. All stock option activity presented in these statements
has been retrospectively adjusted to reflect the conversion.

A person who owns (or is deemed to own) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of the Company will not be granted an ISO unless the exercise
price of such option is at least one hundred ten percent (110%) of the Fair Market Value on the date of grant and the option is not exercisable
after the expiration of five years from the date of grant. Options granted generally vest over four years.

Activity under the Plan is set forth below:

Stock Option Activity

      Options Outstanding  Stock Option Activity  Shares Available for Grant   Number of Options   Weighted-Average Exercise Price Per Share