Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 261

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 261
---
 a public
company, including expenses related to compliance with the rules and regulations of the SEC and those of the Nasdaq Stock Market LLC,
additional insurance expenses, investor relations activities and other administrative, professional and consulting services. As a result
of these and other factors, we expect that we will require additional financing to fund our operations and planned growth. We may seek
to raise any additional capital through equity offerings or debt financings, additional credit or loan facilities or a combination of
one or more of these funding sources. In the scenario that we are unable to acquire sufficient financing or financing on terms satisfactory
to our management or Board of Directors, our ability to continue to pursue our business objectives and to respond to business opportunities,
challenges or unforeseen circumstances could be significantly limited, and our business, financial condition and results of operations
could be materially adversely affected. For the current period and for twelve months following the issuance of these financial statements,
our risk of going concern has been mitigated but not fully alleviated by the Tranche 1 PIPE Convertible Note issued for a gross $10.0
million.

38

Accounting for Business Combination

On July 11, 2025, the Business Combination was successfully completed
and was accounted for as a reverse capitalization in accordance with US GAAP. Legacy Profusa was deemed the accounting predecessor of
the combined business, and the Company (“New Profusa”) as the parent company of the combined business, is the successor SEC
registrant, meaning that our financial statements for previous periods will be disclosed in the registrant’s future periodic reports filed
with the SEC. The Business Combination will have a significant impact on our future capital structure and operating results, de-risking
our product development, manufacturing and commercialization. The most significant changes in New Profusa’s future reported financial
positions are expected to be an estimated increase in cash (as compared to our balance sheets at June 30, 2025 and at December 31, 2024)
of approximately $9.0 million in proceeds from the PIPE Investment. This $9.0 million is offset by various deferred offering costs and
$2.0 million closing fees related to the underwriters marketing fee for the IPO, which became payable upon a successful consummation of
the Business Combination.

As a result of the Merger, the Company has become the successor to
an SEC-registered and Nasdaq- listed company, which will require us to hire additional personnel and implement procedures and processes
to address