Company: PFSA
Filing Date: 2025-04-03
Form Type: S-4/A
Source: 0001213900-25-028544
Chunk: 304

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: S-4/A
Chunk 304
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18Internal modeling 149 •Sales and Marketing expense estimates are based on management’s experience, market research data, publicly available data from competitors, and other business and economic data. Estimated sales commission and rebates are the largest driver of the sales and marketing expense estimated to be approximately 12% and 1.5% of revenue, respectively. Additionally, management based the estimates for advertising, trade shows, and salaries on prior experience, publicly available data from competitors, and other financial and economic resources. •Research and development (R&D) expense estimates are driven by clinical trial costs, development of the Lumee Glucose Reader, and additional iterations on the Lumee platform. Expense estimates for clinical trials were based on estimated number of patients needed to successfully submit a package to the FDA. Per patient costs were based on both historical costs for similar studies we have incurred and quotes we have received for future studies. The number of subjects needed could be more, which would have a negative impact on the overall R&D expense estimates. Salary and development costs are based on historical salary expense, and future assumptions of headcount increases as the company grows. Product development costs are based on both quotes we have received from contract manufacturing partners and management’s assumptions on future product development expense. •Additional key assumptions included in the research and development estimates: •Estimated enrollment across the studies would equal 160 subjects. •R&D costs would be comprised of a mix of internal resources and utilization of a contract manufacturer to develop devices. •Profusa plans to invest in external contract manufacturing which is why there isn’t any significant CAPEX forecasted •General and Administrative (G&A) expense estimates are based on historical data, business and economic data, and management’s experience. G&A data was derived using actual expense, quotes from professional service firms and estimates for lab and lease expansion. Interest Expense Assumption •The Interest expense estimates in the forecast model only calculated the assumed carrying cost of inventory and accounts payable beyond 30 days at an annual rate of 8%. This estimate did not include cost of interest related to capital equipment or any other types of loans, as there were no plans to acquire such loans at the time the projections were prepared. Income Tax Assumptions •Income tax estimates are based on pre -taxnet income multiplied by an effective tax rate of 18%. Capital Expenditure Assumption •The assumption of no capital expenditure is based on Profusa’s plan to engage in contract manufacturing, which does not require more than a de minimis amount of capital investment. The projected