Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 174

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 174
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from equity classification. Equity-classified contracts are initially measured at fair value. Subsequent changes in fair value are not
recognized as long as the contracts continue to be classified in equity. The Company determined the initial fair value using a Black
Scholes pricing model. The initial fair value was $0.3 million.

ELOC

On July 28, 2025, the Company entered into the Purchase Agreement
and the ELOC Registration Rights Agreement with Ascent. Upon the terms and subject to the satisfaction of the conditions contained in
the Purchase Agreement, from and after the Effective Date, the Company will have the right, in its sole discretion, to sell to Ascent
up to $100,000,000 of shares of its Common Stock, subject to certain limitations set forth in the Purchase Agreement, from time to time
during the term of the Purchase Agreement. Sales of Common Stock by the Company to Ascent under the Purchase Agreement, and the timing
of any such sales, are solely at the Company’s option, and the Company is under no obligation to sell any securities to Ascent under the
Purchase Agreement. As of September 30, 2025, approximately $3.5 million in shares of its Common Stock was sold pursuant to the Purchase
Agreement.

Under the Purchase Agreement, the Company has the right, but not the
obligation, from time to time at its sole discretion for a period of up to 36 months, unless the Purchase Agreement is earlier terminated,
to direct Ascent to purchase up to a specified maximum amount of shares of Common Stock in one or more purchases as set forth in the Purchase
Agreement, by delivering a written notice, if any, to Ascent in accordance with the Purchase Agreement on any trading day we select.

As consideration for Ascent’s commitment to purchase shares of
Common Stock at the Company’s direction upon the terms and subject to the conditions set forth in the Purchase Agreement, upon our
execution of the term sheet relating to the Purchase Agreement, the Company issued Ascent warrants (the “Commitment Warrants”)
to purchase up to 900,000 shares of Company Common Stock (the “Commitment Warrant Shares”). The Commitment Warrants have an
exercise price of $0.01 per shares and can be cashless exercised. The warrants were equity classified prior to their exercise due to the
terms of the warrant which was indexed to the Company’s own stock, settlement was in shares only, and the terms met