Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 516

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 516
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2 — Significant Accounting Policies (cont.)

Common Stock Subject to Possible Redemption

The Company’s common stock sold as part of the Units in the IPO (“public common stock”) contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, or if there is a stockholder vote or tender offer in connection with the Company’s initial Business Combination. In accordance with ASC 480 -10-S99, the Company classifies public common stock outside of permanent equity as the redemption provisions are not solely within the control of the Company. The public common stock was issued with other freestanding instruments (i.e., Public Warrants) and as such, the initial carrying value of public common stock classified as temporary equity was the allocated proceeds determined in accordance with ASC 470 -20.

As of September 30, 2024 and December 31, 2023, the amount of public common stock reflected on the consolidated balance sheets is reconciled in the following table:

| Contingently redeemable common stock, December 31, 2022  |     |   |  193,525,484 |   |
| Less:                                                    |     |   |              |   |
| Partial redemption                                       |     |   | (186,410,914 | ) |
| Plus:                                                    |     |   |              |   |
| Accretion of redeemable common stock                     |     |   |    2,137,638 |   |
| Contingently redeemable common stock, December 31, 2023  |     | $ |    9,252,208 |   |
| Less:                                                    |     |   |              |   |
| Partial redemption                                       |     |   |   (1,683,800 | ) |
| Plus:                                                    |     |   |              |   |
| Accretion of redeemable common stock                     |     |   |      572,527 |   |
| Contingently redeemable common stock, September 30, 2024 |     | $ |    8,140,935 |   |

Recently Issued Accounting Standards

In November 2023, the FASB issued ASU No. 2023 -07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the disclosure of additional segment information. ASU No. 2023 -07is effective for fiscal years beginning after December 15, 2023, and interim periods