Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 23

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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, 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 an annual basis, a tabular rate reconciliation using both percentages and currency amounts,
broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those
items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated
by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received.
This pronouncement is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, the
Company will be required to disclose additional specified categories in the rate reconciliation in both percentage and dollar amounts.
The standard, which is effective for the Company’s fiscal year ended December 31, 202