Company: PFSA
Filing Date: 2025-10-09
Form Type: S-1
Source: 0001213900-25-097860
Chunk: 356

Company: Profusa, Inc.
Filing Date: 2025-10-09
Form: S-1
Chunk 356
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 technique requires inputs that are both unobservable and significant to the overall fair value measurement. These inputs
reflect management’s own assumption about the assumptions a market participant would use in pricing the working capital loan.

The convertible promissory
note was classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. Inherent in pricing models are assumptions
related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its common
stock based on historical volatility that matches the expected remaining life of the note. The risk-free interest rate is based on the
U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the note. The expected
life of the note is assumed to be equivalent to their remaining contractual term.

Note 9 — Income Taxes

The Company’s net deferred
tax assets are as follows:

|                                            |     |   | December 31, 
         2024 |   |     |   | December 31, 
         2023 |   |
|:-------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Deferred tax asset/(liability)             |     |   |              |   |     |   |              |   |
| Organizational costs/Startup expenses      |     | $ |      694,480 |   |     | $ |      436,196 |   |
| Unrealized gain/loss – Trust               |     |   |            — |   |     |   |      (13,661 | ) |
| Net deferred tax asset                     |     |   |      694,480 |   |     |   |      422,535 |   |
| Valuation allowance                        |     |   |     (694,480 | ) |     |   |     (436,196 | ) |
| Deferred tax (liability), net of allowance |     | $ |            — |   |     | $ |      (13,661 | ) |

The income tax provision consists
of the following:

|                               |     |   |      For the 
   Year Ended 
 December 31, 
         2024 |   |     |   |      For the 
   Year Ended 
 December 31, 
         2023 |   |
|:------------------------------|:----|:--|-------------:|:--|: