Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 385

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 4
Chunk 385
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Item 4. Controls and Procedures Evaluation of Disclosure Controls
and Procedures

Disclosure controls are procedures that are designed with the objective
of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed,
summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure controls are also designed with the
objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and
chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

48

We have performed a formal evaluation of our internal control over
financial reporting under the supervision and with the participation of management, including our principal executive officer and principal
financial officer, as required by Section 404 of the Sarbanes-Oxley Act. Based upon their evaluation, our principal executive officer
and principal financial and accounting officer, concluded that our internal controls over financial reporting (as defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act) were not effective as of September 30, 2025 due to the existence of material weaknesses. Our internal
controls were not adequately designed and appropriate to address the following material weaknesses related to (i) segregation of duties
in the financial statement close process, (ii) Lack of review controls and expertise to ensure accurate valuations and accounting of financial
instruments, (iii) lack of technical accounting expertise and internal controls to ensure accurate preparation of its financial statements
in accordance with U.S. GAAP including complex debt and equity instruments. We have considered our prior period material weaknesses and
have included these unremediated weaknesses in internal controls in our considerations above, nothing that certain internal controls related
to prior period activities such as proper recording of common stock subject to possible redemption, and the proper safeguarding of trust
assets with the monitoring process of the use of trust funds are no longer applicable. The Company plans to remediate such weaknesses.
In connection with the Business Combination, the Company hired a new CFO with significant experience, including financial reporting and
internal controls. The CFO has established reporting controls consistent with a public company of this size, including segregation of
duties and controls related to Sarbanes-Oxley, to the extent applicable. However, we can give no assurance that the measures we have taken,
or will take, will prevent any future material weaknesses or deficiencies in internal control over financial reporting.

We do not expect