Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 593

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 593
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 |   |     |                |  0.40 |     |            3.18 |

There were no new options granted or exercised during the nine months ended September 30, 2024. Intrinsic values are calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock on the date of exercise. The total fair value of options vested for the nine months ended September 30, 2024 was less than $0.1 million. As of September 30, 2024, the total unrecognized stock -basedcompensation expense for stock options was less than $0.1 million which is expected to be recognized over a weighted -averageperiod of 0.6 years. The Company estimates the fair value of stock options using the Black Scholes option -pricingmodel. The fair value of stock options is being recognized on a straight -linebasis over the requisite service period of the awards.

F-69

PROFUSA, INC. AND SUBSIDIARY
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED) Note 9 — Stock Option Plan (cont.) Nonrecourse Promissory Notes to Early Exercise Stock Options In 2018, one of the Company’s executives early exercised 1,380,015 of his stock options by issuing a promissory note to the Company. As the promissory note is nonrecourse this exercise of stock options with a promissory note is not considered a substantive exercise for accounting purposes. Therefore, no receivable for the promissory note was recorded on the Company’s balance sheet. This arrangement was accounted for as modifications to the original stock options which were exercised by issuing a promissory note. Such modification did not result in additional stock -basedcompensation expense. As of September 30, 2024 these options were fully vested. Stock-Based Compensation Expense by Function The following table is a summary of stock compensation expense by function recognized for the nine months ended September 30, 2024 and 2023 (in thousands):

|                          |     | Nine months ended September 30, | 2024 |     |   | 2023 |
|:-------------------------|:----|:--------------------------------|-----:|:----|:--|-----:|
| General Administrative   |     | $                               |    5 |     |