Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 63

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 as of September
30, 2025 and December 31, 2024, respectively.

The Company’s condensed consolidated financial statements have been
prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has reviewed the relevant conditions and events surrounding its ability to continue as a going concern including
among others: historical losses, projected future results, including the effects of COVID-19, cash requirements for the upcoming year,
funding capacity, net working capital, total stockholders’ deficit and future access to capital.

It is our expectation to continue to make substantial investments in
building its European and United States commercial infrastructure and enhancing existing products and developing new ones. Furthermore,
we aim to continue discussions with potential partners in Asia.

We expect to incur additional expenses due to operating as a public
company, including expenses related to compliance with the rules and regulations of the SEC and those of the Nasdaq Stock Market LLC,
additional insurance expenses, investor relations activities and other administrative, professional and consulting services. As a result
of these and other factors, we expect that we will require additional financing to fund our operations and planned growth. We may seek
to raise any additional capital through equity offerings or debt financings, additional credit or loan facilities or a combination of
one or more of these funding sources. In the scenario that we are unable to acquire sufficient financing or financing on terms satisfactory
to our management or Board of Directors, our ability to continue to pursue our business objectives and to respond to business opportunities,
challenges or unforeseen circumstances could be significantly limited, and our business, financial condition and results of operations
could be materially adversely affected. For the current period and for twelve months following the issuance of these financial statements,
our risk of going concern has been mitigated but not fully alleviated by the Tranche 1 PIPE Convertible Note issued for a gross $10.0
million.

38

Accounting for Business Combination

On July 11, 2025, the Business Combination was successfully completed
and was accounted for as a reverse capitalization in accordance with US GAAP. Legacy Profusa was deemed the accounting predecessor of
the combined business, and the Company (“New Profusa”) as the parent company of the combined business, is the successor SEC
registrant, meaning that our financial statements for previous periods will be disclosed in the registrant’s future periodic reports filed
with the SEC. The Business Combination will have a significant impact on