Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 41

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Chunk 41
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2024, as the Tasly Convertible Loan had a revaluation gain during the prior year period of less than
$0.1 million.

Interest Expense – Interest
expense increased by $0.2 million, or 14%, to $1.2 million during the three months ended March 31, 2025 from $1.1 million during the three
months ended March 31, 2024. The increase was primarily due to the $2.0 million in additional senior notes that were issued.

Other Income (Expense) –
Other income (expense) decreased by less than $0.1 million during the three months ended March 31, 2025.

Liquidity and Capital Resources

Sources of Liquidity

We incurred net losses and
negative operating cash flows from operations since inception, and we expect to continue to incur losses and negative operating cash flows
for the foreseeable future until we successfully commence sustainable commercial operations. To date, we have funded our operations primarily
with proceeds from the issuance of convertible preferred stock, junior and senior convertible notes, PPP Loans available to us under the
Paycheck Protection Program and promissory notes. From inception through March 31, 2025, we raised gross proceeds of $97.3 million from
the issuances of convertible preferred stock and convertible notes and loans, received $2.5 million from PPP Loans and received $0.9 million
from issuance of promissory notes. As of March 31, 2025, we had cash and cash equivalents of less than $0.01 million.

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Our junior convertible notes
bore interest at 12% per annum and, as of March 31, 2025, their then outstanding principal and accrued but unpaid interest of $19,611,880
was to automatically convert into New Profusa Common Stock at $7.00 per share upon consummation of the Merger transaction. In addition,
following consummation of the Merger, all former holders of junior notes have a right to receive additional shares upon achievement by
New Profusa of certain share price and sales milestones (the earnout shares).

Further, our junior notes
were automatically convertible into the shares of convertible preferred stock issued upon consummation of a Qualified Financing (an equity
financing with aggregate proceeds to the Company of not less than $20.0 million) at a conversion price equal to the lesser of (i) the
per share price obtained