Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 300

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 300
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 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 year-ended December 31, 2024 was less than $0.1 million.

As of December 31, 2024,
the total unrecognized stock-based compensation expense for stock options was less than $0.1 million which is expected to be recognized
over a weighted-average period of 0.4 years. On the grant date, the Company estimates the fair value of stock options using the Black
Scholes option-pricing model. The fair value of stock options is being recognized on a straight-line basis over the requisite service
period of the awards.

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-based
compensation expense. As of December 31, 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 years ended December 31, 2024 and 2023 (in thousands):

|                          |     | Years ended  
 December 31, | 2024 |     |   | 2023 |
|:-------------------------|:----|:-------------|-----:|:----|:--|-----:|
| General Administrative   |     | $            |    7 |     | $ |   10 |
| Research and development |     |              |   14 |     |   |   23 |
|                          |     | $            |   21 |     | $ |   33 |

<div align='center'>F-25

PROFUSA, INC. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS</div>

Note 10 — Related Party Transactions

The Company issued convertible
notes