Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 47

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 47
---
 and December 31, 2024, the Company had principal outstanding of $1,919,796 and is presenting the Note at fair value on its balance
sheet at September 30, 2025 in the amount of $1,919,796. The Company has deferred the repayment of the note to six months after the Closing
and has classified this as a current asset due to the repayment being in default.

Note 7 — Commitments and Contingencies

Operating Lease Obligations

Beginning in October 2024, the Company entered into a lease agreement
whereby the Company agreed to rent its office and lab facilities under month-to-month tenancy. The monthly rent payable under the lease
is $25 thousand. This month-to-month lease automatically renews every four months, unless written termination is provided.

Operating costs for short-term leases include variable lease costs
of $0.1 million and less than $0.1 million during the three months ended September 30, 2025 and 2024, compared to $0.2 million and $0.1
million during the nine months ended September 30, 2025 and 2024. Starting from August 2022, the Company recognized lease expense in the
amount of monthly rent as incurred. The Company recognized operating lease costs for monthly rent of $75 thousand and $150 thousand for
each of the three and nine month periods ending September 30, 2025 and 2024. Total operating lease costs with common area maintenance
variable costs were $0.3 million and $0.2 million for the nine months ended September 30, 2025 and 2024.

Contingencies and Indemnifications

From time to time, the Company may have certain contingent liabilities
that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that
future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine
both probability and the estimated amount.

In the normal course of business, the Company enters into contracts
and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure
under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet
been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations.
However, the Company may record