Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 315

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 315
---
acts

The world economy is experiencing
stubbornly high inflation, a challenge not faced for decades. Following the global financial crisis, with inflationary pressures muted,
interest rates were extremely low for years and investors became accustomed to low volatility. The resulting easing of financial
conditions supported economic growth, but it also contributed to a buildup of financial vulnerabilities. With inflation at multi-decade
highs, monetary authorities in advanced economies are accelerating the pace of policy normalization. Policymakers have continued to tighten
policy against a backdrop of rising inflation and currency pressures, albeit with notable differences across regions. Global financial
conditions have tightened notably this year, leading to capital outflows. Amid heightened economic and geopolitical uncertainties, investors
have aggressively pulled back from risk-taking and adjusted their investment preferences generally. Key gauges of systemic risk, such
as higher dollar funding costs and counterparty credit spreads, have risen. There is a risk of a disorderly tightening of financial conditions
that may be amplified by vulnerabilities built over the years.

In addition, our business,
growth, financial condition or results of operations could be materially adversely affected by instability or changes in a country’s
or region’s economic conditions; inflation; changes in laws or regulations or in the interpretation of existing laws or regulations,
whether caused by a change in government or otherwise; increased difficulty of conducting business in a country or region due to actual
or potential political or military conflict; or action by the U.S. or foreign governments that may restrict our ability to transact
business in a foreign country or with certain foreign individuals or entities. A possible slowdown in global trade caused by increasing
tariffs or other restrictions could decrease consumer or corporate confidence and reduce consumer, government and corporate spending
in countries inside or outside the U.S., which could adversely affect our operations. Climate-related events, including extreme
weather events and natural disasters and their effect on critical infrastructure in the U.S. or internationally, could have similar
adverse effects on our operations, users, or third-party suppliers.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed
consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States
of America (“U.S. GAAP”) and pursuant to applicable rules and regulations of the Securities and Exchange Commission
(“SEC”).

Unaudited Interim Financial Information

The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“U