Company: PFSA
Filing Date: 2025-10-09
Form Type: S-1
Source: 0001213900-25-097860
Chunk: 403

Company: Profusa, Inc.
Filing Date: 2025-10-09
Form: S-1
Chunk 403
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 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.

| Fair value at February 11, 2025                       |     | Securities 
 Purchase   
 Agreement  |       — |
|:------------------------------------------------------|:----|:-----------|--------:|
| Change in fair value of securities purchase agreement |     |            |  23,487 |
| Fair value at March 31, 2025                          |     |            |  23,487 |
| Change in fair value of securities purchase agreement |     |            | 170,391 |
| Fair value at June 30, 2025                           |     | $          | 193,878 |

The Company utilizes a Monte
Carlo model to estimate the fair value of the conversion feature within the securities purchase agreement, which is required to be recorded
at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the
conversion feature are recognized as non-cash gains or losses in the accompanying condensed consolidated statements of operations.

The key assumptions in the
model relate to expected share-price volatility, risk-free interest rate, exercise price, expected term and the probability of occurrence
of the transaction. The expected volatility was based on the average volatility of special purpose acquisition companies that are searching
for an acquisition target. 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 — Segment Information

ASC Topic 280, “Segment
Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products,
services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business
activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is
regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess
performance.

The Company’s chief operating
decision maker (“CODM”) has been identified as its Chief Financial Officer, who reviews the assets, operating results, and
financial metrics for the