Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 385

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 385
---
 | $           |   944,118 |   |

The fair value of the Company’s
convertible promissory note is valued using a compound option formula on the convertible feature and a present value of the host contract.
The valuation technique requires inputs that are both unobservable and significant to the overall fair value measurement. These inputs
reflect management’s own assumption about the assumptions a market participant would use in pricing the working capital loan.

The convertible promissory
note was classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. Inherent in pricing models are assumptions
related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its common
stock based on historical volatility that matches the expected remaining life of the note. The risk-free interest rate is based on the
U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the note. The expected
life of the note is assumed to be equivalent to their remaining contractual term.

Note 9 — Income Taxes

The Company’s net deferred
tax assets are as follows:

|                                            |     |   | December 31, 
         2024 |   |     |   | December 31, 
         2023 |   |
|:-------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Deferred tax asset/(liability)             |     |   |              |   |     |   |              |   |
| Organizational costs/Startup expenses      |     | $ |      694,480 |   |     | $ |      436,196 |   |
| Unrealized gain/loss – Trust               |     |   |            — |   |     |   |      (13,661 | ) |
| Net deferred tax asset                     |     |   |      694,480 |   |     |   |      422,535 |   |
| Valuation allowance                        |     |   |     (694,480 | ) |     |   |     (436,196 | ) |
| Deferred tax (liability), net of allowance |     | $ |            — |   |     | $ |      (13,661 | ) |

The income tax provision consists
of the following:

|                               |     |   |      For the 
   Year Ended 
 December 31,