Company: PFSA
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001213900-25-044417
Chunk: 477

Company: Profusa, Inc.
Filing Date: 2025-05-15
Form: 424B3
Chunk 477
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 Under this approach recognize grants at fair value only when there is reasonable assurance that we will comply with the conditions attaching to them, and that the grants will be received. We recognize as income the amounts received or receivable from expense reimbursement grants to the extent, and in the period in which, the qualifying costs have been incurred. We recognize as income the amounts received or receivable from fixed fee grants by applying the proportional performance method. Under this method we recognize grant income using the same proportion as the costs incurred to date to the total expected cost of the project, but limiting the income to be recognized to the amount to which we entitled based on the submitted deliverables. Fair Value of Financial Instruments The Company’s financial instruments consist of other receivables, accounts payable, promissory notes, convertible promissory notes and senior notes. The Company states accounts payable at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The promissory notes are stated at amortized cost, which approximates their fair value, because the Company believes their terms approximate those that would be available to it on a similar loan from an unrelated party. The Tasly convertible debt issued between June 2023 -February2024 (Notes 3 and 5) is carried at fair value based on unobservable market inputs. Share-Based Compensation We account for share -basedcompensation arrangements with employees and non -employeesusing a fair value method which requires the recognition of compensation expense for costs related to all share -basedpayments including stock options. The fair value method requires us to estimate the fair value of share -basedpayment awards on the date of grant using an option pricing model. We use the Black -Scholespricing model to estimate the fair value of options granted that are then expensed on a straight -linebasis over the vesting period. We account for forfeitures as they occur. Option valuation models, including the Black -Scholesoption -pricingmodel, require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the grant -datefair value of an award. These assumptions include the risk -freerate of interest, expected dividend yield, expected volatility, and the expected life of the award. • Expected Term. The expected term is calculated using the simplified method, which is available where there is insufficient historical data about exercise patterns and post -vestingemployment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vest