Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 18

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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    $2,757 
  
    Charged against additional paid-in capital 
     (283)
  
    Charged against transaction costs 
     (2,474)
  
    Balance as of September 30, 2025 
    $— 

10

ELOC

On July 28, 2025, the Company entered into the Purchase Agreement and
the ELOC Registration Rights Agreement with Ascent. Upon the terms and subject to the satisfaction of the conditions contained in the
Purchase Agreement, from and after the Effective Date, the Company will have the right, in its sole discretion, to sell to Ascent up to
$100,000,000 of shares of its Common Stock, subject to certain limitations set forth in the Purchase Agreement, from time to time during
the term of the Purchase Agreement. The ELOC is accounted for in accordance with US GAAP accounting for standby equity purchase agreements
(“SEPA”) which are accounted for as an asset or liability pitot to the settlement of shares in equity and is not considered
indexed to the Company's stock under step 2 in ASC 815-40-15-7 and therefore liability classified.

As consideration for Ascent’s commitment to purchase shares of
Common Stock at the Company’s direction upon the terms and subject to the conditions set forth in the Purchase Agreement, upon our
execution of the term sheet relating to the Purchase Agreement, the Company issued Ascent warrants (the “Commitment Warrants”)
to purchase up to 900,000 shares of Company Common Stock (the “Commitment Warrant Shares”). Warrants are recorded at their
fair value on grant date which was $0.9 million and were expensed to financing fees in accordance with US GAAP accounting for standby
equity purchase agreements (“SEPA”).

Issuance fees such as warrant costs associated to a SEPA or ELOC are
expensed upfront.. The associated equity classified warrants were not remeasured after initial issuance. In the instance of liability
classified warrants, the Company revalues the warrants in subsequent periods with the change in fair value recorded in earnings.

When the Company draws on the ELOC and issues shares, it recognizes
the proceeds in equity. The amount recorded is based on the fair value of the cash received. The Company records ELOC transactions based on the actual cash received for each draw, as this is clearly measurable and traceable.

Merger with Northview Acquisition Company

The Company accounted for the merger with Northview