Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 603

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 603
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 event of a significant delay or cancellation of a planned offering of securities, all of the costs are expensed. Offering costs capitalized as of December 31, 2023 and December 31, 2022 were $1.5 million and $0.8 million, respectively. Fair Value of Financial Instruments The Company’s financial instruments consist of other receivables, accounts payable, promissory notes, convertible promissory notes and senior notes. The Company states accounts payable at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The promissory notes are stated at amortized cost, which approximates their fair value, because the Company believes their terms approximate those that would be available to it on a similar loan from an unrelated party. The Tasly convertible debt issued between June -August2023 (Note 5) carried at fair value based on unobservable market inputs. Share-Based Compensation The Company accounts for share -basedcompensation arrangements with employees and non -employeesusing a fair value method which requires the recognition of compensation expense for costs related to all share -basedpayments including stock options. The fair value method requires the Company to estimate the fair value of share -basedpayment awards on the date of grant using an option pricing model. The Company uses the Black -Scholespricing model to estimate the fair value of options granted that are then expensed on a straight -linebasis over the vesting period. The Company accounts for forfeitures as they occur. Option valuation models, including the Black -Scholesoption -pricingmodel, require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the grant -datefair value of an award. These assumptions include the risk -freerate of interest, expected dividend yield, expected volatility, and the expected life of the award. F-79 PROFUSA, INC. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 2 — Summary of Significant Accounting Policies (cont.) Convertible Preferred Stock The Company records all shares of convertible preferred stock at their respective fair values on the dates of issuance, net of issuance costs. The convertible preferred stock is recorded outside of permanent equity because while it is not mandatorily redeemable, in certain events considered not solely within the Company’s control, such as a merger, acquisition, or sale of all or substantially all of the Company’s assets (each, a “deemed liquidation event”), the convertible preferred stock will become