Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 177

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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   -        Options cancelled/forfeited   —    —    -        Balances at September 30, 2024   539,564    1,027,897   $1.16    3.18   Exercisable at September 30, 2024        525,969   $1.41    4.51  

During the three months ended September 30, 2025 and 2024, there was
no stock option activity. Intrinsic values are calculated as the difference between the exercise price of the underlying options and the
fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock
on the date of exercise.

The total fair value of options vested for the three and nine months
ended September 30, 2025 and 2024 was less than $0.1 million.

As of September 30, 2025, the total unrecognized stock-based compensation
expense for stock options was $3.0 million, which is expected to be recognized over a weighted-average period of 1.3 years. The Company
estimates the fair value of stock options using the Black Scholes option-pricing model. The fair value of stock options is being recognized
on a straight-line basis over the requisite service period of the awards.

As of September 30, 2024, the total unrecognized stock-based compensation
expense for stock options was less than $0.1 million, which is expected to be recognized over a weighted-average period of 1.1 years. The
Company estimates the fair value of stock options using the Black Scholes option-pricing model. The fair value of stock options is being
recognized on a straight-line basis over the requisite service period of the awards.

Nonrecourse Promissory Notes to Early Exercise Stock Options

In 2018, one of the Company’s executives early exercised 1,380,015
of his stock options by issuing a promissory note to the Company. As the promissory note is nonrecourse, this exercise of stock options
with a promissory note is not considered a substantive exercise for accounting purposes. Therefore, no receivable for the promissory note
was recorded on the Company’s balance sheet. This arrangement was accounted for as modifications to the original stock options which
were exercised