Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 1113

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1113
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    $            436,196 
  
    Unrealized gain/loss - Trust 
     —  
     (13,661)
  
    Net deferred tax asset 
     694,480  
     422,535 
  
    Valuation allowance 
     (694,480) 
     (436,196)
  
    Deferred tax (liability), net of allowance 
    $—  
    $(13,661)

The
income tax provision consists of the following:

    For the Year Ended December 31, 2024  
    For the Year Ended December 31, 2023 
  
    Federal 

    Current 
    $            94,174  
    $            480,069 
  
    Deferred 
     (271,945) 
     (226,991)
  
    State 
     —  
     — 
  
    Change in valuation allowance 
     258,284  
     203,712 
  
    Income tax provision 
    $80,513  
    $456,790 

As
of December 31, 2024 and 2023, the Company had $0 in U.S. federal net operating loss carryovers available to offset future taxable income.

In
assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all
of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of
future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies
in making this assessment. After consideration of all of the information available, management believes that significant uncertainty
exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the
years ended December 31, 2024 and 2023, the change in the valuation allowance was $258,284 and $203,712.

A reconciliation of the federal income tax rate
to the Company’s effective tax rate is as follows:

    December 31, 2024  
    December 31, 2023 
  
    Statutory federal income tax rate 
                 21.0% 
                 21.0%
  
    Prior Year Trueup 
     0.00