Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 45

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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ory
notes accrue interest at 5% and 12% per annum, most of which do not have a set maturity date. Any 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 consummation of the Business
Combination. The Company is currently in default; accordingly, the Company classified the entire outstanding amount as a current liability
on the condensed consolidated balance sheet.

25

During the year ended December 31, 2022, the Company borrowed $0.3
million from two of its founders at zero interest rate to finance its short-term operations, from which $0.2 million was repaid in the
same period.

During the year ended December 31, 2023, the Company borrowed short-term
promissory notes of $0.3 million from an existing investor and additional $0.1 million from an unrelated party repayable on demand at
any time after December 31, 2023, with annual interest rate of 12%.

During the three and nine months ended September 30, 2025 and
2024, one note of $0.1 million was issued and the Company did not make any repayments from the outstanding balance of the promissory
notes.

As of September 30, 2025 and December 31, 2024, accrued and unpaid
interest on the promissory notes was $0.3 million and $0.3 million, respectively. Interest expense on the promissory notes was less than
$0.1 million for each of the three and nine months ended September 30, 2025 and 2024. The carrying value of the promissory notes as of
September 30, 2025 and December 31, 2024 was $0.9 million and $0.9 million, respectively.

Paycheck Protection Program

On May 25, 2021, the Company borrowed $1.3 million (the “PPP
Loan 2”) as a Paycheck Protection Program loan. The Paycheck Protection Program, established as part of the Coronavirus Aid, Relief,
and Economic Security (“CARES”) Act, provides for loans to qualifying businesses and is administered by the U.S. Small Business
Administration (the “SBA”). The annual interest rate of the PPP Loan 2 is 1%.

Under the terms of PPP Loan 2, if the Company does not