Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 141

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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of credit risk consist of cash and other receivables. Substantially all of the Company’s cash is held by one financial institution.
Such deposits may, at times, exceed federally insured limits. The Company has not experienced any losses on its cash.

9

Cash

The Company considers all highly liquid investments purchased with
an original maturity of three months or less to be cash equivalents. As of September 30, 2025 and 2024, cash consisted of cash on deposit
with a bank denominated in U.S. dollars.

Digital assets

As a result of the adoption of ASU 2023-08, Intangibles-Goodwill
and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), digital assets
are measured at fair value as of each reporting period. The fair value of digital assets is measured using the period-end closing price
from Coinbase, in accordance with ASC 820. Since the digital assets are traded on a 24-hour period, the Company utilizes the price as
of midnight UTC time. Changes in fair value are recognized in Gain (loss) on fair value of digital assets, in Operating income
(loss) on the Statement of Operations. When the Company sells digital assets, gains or losses from such transactions are measured
as the difference between the cash proceeds and the carrying basis of the digital assets as determined on a First In-First Out basis and
are also recorded within the same line item, Gains (loss) on fair value of digital assets.

The Company holds all digital assets with BitGo for custodial services,
who were selected based on various factors, including their financial strength and industry reputation. Custodian risk refers to the potential
loss, theft, or misappropriation of the Company’s digital assets due to operational failures, cybersecurity breaches, or financial
difficulties experienced by these third parties. Although the Company periodically monitors the financial health, insurance coverage,
and security measures of its custodians, reliance on such third parties inherently exposes the Company to risks that it cannot fully mitigate.

Deferred Offering Costs

Specific incremental costs, consisting of legal, accounting and other
fees and costs, directly attributable to a proposed or actual offering of securities are deferred and charged against the gross proceeds
of the offering. In the event of a significant delay or cancellation of a planned offering of securities, all of the costs are expensed.
Offering costs capitalized as of September 30,