Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 305

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 305
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and penalties as part of income tax expense. As of December 31, 2024 and 2023, the Company has not accrued interest and/or penalties.

The Company files tax returns
in the U.S. Federal, California and various other states. Due to the Company’s net operating losses, its Federal and state
income tax returns remain subject to examination since inception. As of December 31, 2024, there are no ongoing tax examinations.

On March 27, 2020, Congress
passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The act contains many tax incentives intended
to assist companies and individuals during the COVID-19 outbreak. The Company received Paycheck Protection Program Loans during the years
ended December 31, 2021 and December 31, 2020 of $1.3 million and $1.2 million, respectively. The Company had $1.4 million
of Paycheck Protection Program loans outstanding as of December 31, 2024 and 2023.

On August 16, 2022, the
Inflation Reduction Act of 2022 (“IRA”) was signed into federal law. IRA, among other things, imposes a nondeductible
1% excise tax after December 31, 2022 on the fair market value of certain stock that is “repurchased” by a publicly traded
U.S. corporation or acquired by certain of its subsidiaries. The taxable amount is reduced by the fair market value of certain issuances
of stock throughout the year. The Company does not expect this tax law change to have a material impact on its consolidated financial
position; however, it will continue to evaluate its impact as further information becomes available. If average annual adjusted financial
statement income exceeds $1 billion over a 3-taxable-year period, IRA also imposes a 15% corporate alternative minimum tax on adjusted
financial statement income for taxable years beginning after December 31, 2022. The Company does not expect to incur this tax
in the foreseeable future.

Under the Tax Cuts and Jobs
Act of 2017, research and development costs are no longer fully deductible and are required to be capitalized and amortized
for U.S. tax purposes effective January 1, 2022. The mandatory capitalization requirement increases our deferred tax assets
and is fully offset with the valuation allowance.

Note 14 — Segments

The Company operates as one operating segment.
The Company’s chief operating decision maker (“