Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 111

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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, 2025, at which the stockholders approve the extension of the business combination
period until June 22, 2025. As a condition of the extension, the Company contributed $30,000 to the Trust Account, for the entire extension
period, on March 21, 2025. On July 1, 2025, the Company filed the Amendment to extend the date by which the Company must consummate a
business combination or, if it fails to do so, cease its operations and redeem or repurchase 100% of the shares of the Company’s
common stock issued in the Company’s initial public offering, from June 22, 2025 to August 22, 2025. In connection with the
special meeting of stockholders to approve the Business Combination, stockholders of the Company redeemed 52,784 shares of common stock
for an aggregate amount of $661,012.

As of June 30, 2025, $1,274,549 of the Trust
assets were classified as noncurrent assets and $661,012 of the Trust assets due to redeeming stockholders were classified as current
assets. As a result of the Business Combination, the $661,012 due to redeeming stockholders was paid at the Closing.

Fair Value of Financial Instruments

The fair value of the Company’s assets
and liabilities approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due
to their short-term nature, except for the warrant liabilities, convertible promissory note, and securities purchase agreement.

12

Income Taxes

The Company accounts for income taxes under ASC
740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the
expected impact of differences between the condensed consolidated financial statements and tax basis of assets and liabilities and for
the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation
allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of
June 30, 2025 and December 31, 2024, the Company’s deferred tax asset had a full valuation allowance recorded against it.

ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s condensed consolidated financial statements and prescribes a recognition threshold
and measurement process for financial statement recognition and measurement of a tax position taken or expected