Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 900

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 900
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 from March 22, 2025
to June 22, 2025. The meeting was adjourned until March 21, 2025, at which the stockholders approve the extension of the business combination
period until June 22, 2025. As a condition of the extension, the Company contributed $30,000 to the Trust Account, for the entire extension
period, on March 21, 2025.

As of December 31, 2024, all of the Trust assets
were classified as noncurrent assets.

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities approximates the carrying amounts represented in the accompanying consolidated balance sheets, primarily due to their short-term
nature, except for the warrant liabilities and convertible promissory note.

Income Taxes

The Company accounts for income taxes under ASC
740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred tax assets and liabilities for both the expected
impact of differences between the consolidated financial statements and tax basis of assets and liabilities and for the expected future
tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established
when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of December 31, 2024 and 2023, the
Company’s deferred tax asset had a full valuation allowance recorded against it.

ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process
for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits
to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides
guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes interest and penalties
related to unrecognized tax benefits as a formation cost expense. The Company is currently not aware of any issues under review that could
result in significant payments, accruals or material deviation from its position. Interest and penalties expense amounted to $0 and $19,158
during the years ended December 31, 2024 and 2023, respectively.

The Company has identified the United States as
its only “major” tax jurisdiction. The Company is subject to income