Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 272

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 272
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 promissory notes that did have an initial maturity date, which has passed, the
Company has verbally agreed to pay off these loans subsequent to the Closing. The Company is currently in default; accordingly, the Company
classified the entire outstanding amount as a current liability on the condensed consolidated balance sheet.

Additional funds may be necessary to maintain current operations and
will be required for successful product commercialization efforts. Subsequent to the period ended September 30, 2025, management obtained
additional funds from the ELOC, however, conditions exist that raise substantial doubt about our ability to continue as a going concern
within one year from the date the unaudited condensed consolidated financial statements as of and for the nine months ended September
30, 2025 are issued.

Long-Term Liquidity Requirements

We expect our cash and cash equivalents on hand, and cash that we received
from the Business Combination and PIPE Investment, together with proceeds from the ELOC and the cash we expect to generate from future
operations, will provide sufficient funding to support initial commercial operations. The cash generated from the Business Combination
includes an initial net $9 million in PIPE proceeds from the first tranche and net $2 million from the second tranche of a convertible
note. The cash generated from the ELOC was $3.5 million in the third quarter. Until we generate sufficient operating cash flow to cover
our operating expenses, working capital needs and planned capital expenditures, or if circumstances evolve differently than anticipated,
we expect to utilize a combination of equity and debt financing to fund any future capital needs. If we raise funds by issuing equity
securities, dilution to stockholders may result. Any equity securities issued may also provide for rights, preferences, or privileges
senior to those of holders of common stock. If we raise funds by issuing debt securities, these debt securities may have rights, preferences,
and privileges senior to those of common stockholders. The terms of debt securities or borrowings could impose significant restrictions
on our operations. The capital markets are currently experiencing, and may continue to experience in the future, periods of upheaval that
could impact the availability and cost of equity and debt financing.

Our principal uses of cash in recent periods have been funding our
research and development activities, legal and bank transaction fees, and other personnel cost. Near-term capital requirements through
September 30, 2025 leading to and supporting initial commercialization are estimated to total approximately $19.4 million and include
further research and development to enable