Company: PFSA
Filing Date: 2025-05-09
Form Type: S-4/A
Source: 0001213900-25-041151
Chunk: 305

Company: Profusa, Inc.
Filing Date: 2025-05-09
Form: S-4/A
Chunk 305
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2)The product use case. Profusa management excluded companies such as Senseonics due to their requirement of surgical procedure implanting their sensors into the patient, as this user barrier is inconsistent with the Profusa platform. Total Operating Expenses •The operating expense assumptions are based on a number of estimates including internal and third -partyestimates in published literature, and other business and economic data. Key drivers of the operating expense are Cost of Sales, Sales and Marketing, Research and Development, and General and Administrative expense. 18 •Cost of Sales estimates were based on current manufacturing quotes received for manufacturing Profusa’s Lumee Oxygen reader. Management used past experience and market data to estimate the potential cost reduction as a result of manufacturing the device in higher volumes in later years. •Additional key assumptions included in the cost of sales estimates: •Cost of sales per patient assumes the use and cost of 1 device & 2 injectable sensors, annually. •A cost of the Lumee Oxygen initial device and Injectable sensor package of $400 and $50, respectively, and continued manufacturing optimization and supply chain efficiencies over the lifecycle of the product would decreased Lumee Oxygen cost to $150 and Injectable sensor package to $25 by Q4 of 2026; •A cost of the Lumee Glucose initial device and injectable sensor package of $163 and $25, respectively, at the expected product launch in Q4 2026, with Lumee Glucose cost of sales per patient decreasing over time due to manufacturing efficiencies learned from Lumee Oxygen and supply chain efficiencies. ____________ 2See Abbott press release dated February 20, 2020 stating in part “Abbott’s FreeStyle Libre system is now being used by more than 2 million people living with diabetes.” 18Internal modeling 150 •Sales and Marketing expense estimates are based on management’s experience, market research data, publicly available data from competitors, and other business and economic data. Estimated sales commission and rebates are the largest driver of the sales and marketing expense estimated to be approximately 12% and 1.5% of revenue, respectively. Additionally, management based the estimates for advertising, trade shows, and salaries on prior experience, publicly available data from competitors, and other financial and economic resources. •Research and development (R&D) expense estimates are driven by clinical trial costs, development of the Lumee Glucose Reader, and additional iterations on the Lumee platform. Expense estimates for clinical trials were based on estimated number of patients needed to successfully submit a package