Company: PFSA
Filing Date: 2025-10-09
Form Type: S-1
Source: 0001213900-25-097860
Chunk: 306

Company: Profusa, Inc.
Filing Date: 2025-10-09
Form: S-1
Chunk 306
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 $ million from two of its founders at zero interest rate to finance its short-term operations, from
which $ million was repaid in the same period.

During the year ended December 31,
2023, the Company borrowed short-term promissory notes of $ million from an existing investor and additional $ million
from an unrelated party repayable on demand at any time after December 31, 2023, with annual interest rate of %.

During the three and six months
ended June 30, 2025 and 2024, the Company did not make any repayments from the outstanding balance of the promissory notes.

As of June 30, 2025 and
December 31, 2024, accrued and unpaid interest on the promissory notes was $ million and $ million, respectively.
Interest expense on the promissory notes was less than $ million for each of the three and six months ended June 30,
2025 and 2024. The carrying value of the promissory notes as of June 30, 2025 and December 31, 2024 was $ million and
$ million, respectively.

Paycheck Protection Program

On May 25, 2021, the Company
borrowed $ million (the “PPP Loan 2”) as a Paycheck Protection Program loan. The Paycheck Protection Program, established
as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, provides for loans to qualifying businesses and
is administered by the U.S. Small Business Administration (the “SBA”). The annual interest rate of the PPP Loan 2 is
%.

Under the terms of PPP Loan
2, if the Company does not submit forgiveness application within weeks the initial disbursement of the loan (the “Covered
Period”), the Company must begin to make equal monthly payments of principal and interest starting from the end of
the Covered Period until May 25, 2026. Interest on the loan continues to accumulate during any deferment period. As of June 30,
2025, the Company has not applied for forgiveness under PPP Loan 2.

As of December 31, 2024
and June 30, 2025, the Company was in default on PPP Loan 2 due to non-payment of minimal repayment amounts required by the terms
of PPP Loan 2. Accordingly, the Company classified the entire amount outstanding under PPP Loan 2 as current and accrued respective late
penalties for the total amount