Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 621

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 621
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 taxable income.

In
assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all
of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of
future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible.
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies
in making this assessment. After consideration of all of the information available, management believes that significant uncertainty
exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the
years ended December 31, 2024 and 2023, the change in the valuation allowance was $258,284 and $203,712.

A reconciliation of the federal income tax rate
to the Company’s effective tax rate is as follows:

    December 31, 2024  
    December 31, 2023 
  
    Statutory federal income tax rate 
                 21.0% 
                 21.0%
  
    Prior Year Trueup 
     0.00  
     0.00 
  
    Change in fair value of warrant liabilities 
     (18.7) 
     (11.4)
  
    Business combination expenses 
     0.00  
     5.8 
  
    Penalties and interest 
     0.00  
     0.2 
  
    Change in valuation allowance 
     (3.0) 
     12.6 
  
    Income tax provision 
     (0.90)% 
     28.2%

The Company files income tax returns in the U.S.
federal, New York and New York City jurisdictions and is subject to examination by the various taxing authorities since inception.

F-22

Note
10 – Segment Information

ASC
Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information
about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components
of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial
information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how
to allocate resources and assess performance.

The Company’s chief operating decision maker
(“COD