Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 147

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 147
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 issuance, in stockholders’ deficit in the condensed consolidated balance sheets, and the amount initially recorded is not subsequently
remeasured at fair value. Legal and professional fees incurred in connection with the issuance of liability-classified warrants, including
those failing equity classification under ASC 815-40 are expensed immediately to the income statement as incurred.

Income Taxes

The Company has established deferred income tax assets and liabilities
for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax
rates expected to be in effect when such assets or liabilities are realized or settled pursuant to the provisions of ASC Topic 740,
“Income Taxes,” which prescribes a comprehensive model for the financial statement recognition, measurement, classification
and disclosure of uncertain tax positions. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained
upon examination by taxing authorities. The Company has not recorded any unrecognized tax benefits as of September 30, 2025 and December
31, 2024.

The Company has no tax provision for the nine months ended September
30, 2025 and 2024, due to the net losses and full valuation allowance against net deferred tax assets. Additionally, the Company does
not earn a material amount of revenue or interest as of the date of these financial statements requiring a tax provision.

Excise tax payable

The Inflation Reduction Act of 2022, enacted in August 2022, imposed
a 1% non-deductible excise tax on net repurchases of shares by domestic corporations whose stock is traded on an established securities
market.

Recent Accounting Standards

From time to time, new accounting standards are issued by the Financial
Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective
date. During the nine months ended September 30, 2025 and through the date of issuance of these condensed consolidated financial statements,
there have been no new, or existing, recently issued accounting pronouncements that are of significance, or potential significance, that
impact the Company’s condensed consolidated financial statements.

Recently issued accounting standards not yet adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic
740): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires
a public business entity (PBE) to disclose, on