Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 455

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 455
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 the Tasly Convertible Debt in its entirety was recorded at fair value at inception and is subject to remeasurement to fair value at each balance sheet date, with the change in fair value reflected in the statements of operations. Loss on Debt Extinguishment, Net During the years ended December 31, 2023 and 2022, we amended the terms of our convertible notes, including extension of maturity dates and modification of certain conversion features. These changes to the terms of the convertible notes required us to apply extinguishment model of accounting for such changes. Under this model the 258

terms of the existing debt and the revised debt are considered to be substantially different, such that an entity is assumed to have replaced an existing debt facility with a new debt facility, where the carrying values of the existing debt are derecognized and the assumed new debt is recognized at fair value, with the resulting loss recognized in earnings. Gain on PPP Loan Forgiveness On April 16, 2020 and May 25, 2021, we borrowed $1.2 million (the “PPP Loan 1”) and $1.3 million (the “PPP Loan 2”), respectively, as a Paycheck Protection Program loan (together the “PPP Loans”). The Paycheck Protection Program, established as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, provides for loans to qualifying businesses and is administered by the U.S. Small Business Administration (the “SBA”). The annual interest rate of the PPP Loans is 1%. The PPP Loans are eligible for forgiveness, provided the borrower has met the respective forgiveness requirements, has timely submitted an application for forgiveness and the forgiveness has been granted by the SBA. PPP Loan 1 has been approved for loan forgiveness, and management intends to apply for PPP Loan 2 forgiveness in 2024. Interest Expense Interest expense consists primarily of the interest on our convertible notes, senior notes, Tasly convertible debt, and PPP Loans. Other Income Other income consists primarily of income earned from sale of equipment and a short -termsublease of a portion of our facilities. Results of Operations Comparison of the nine months ended September 30, 2024 to the nine months ended September 30, 2023 The following table sets forth our unaudited consolidated statements of operations for the interim periods indicated (in thousands):

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