Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 510

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 510
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 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 2 — Significant Accounting Policies (cont.)

Cash and Marketable Securities Held in Trust Account

At September 30, 2024, the assets held in the Trust Account were in cash. At December 31, 2023, the assets held in the Trust Account were held in U.S. Treasury Bills with a maturity of 185days or less and in money market funds which invest in U.S. Treasury securities.

During the nine months ended September 30, 2024, pursuant to the trust agreement dated as of December 20, 2021 between the Company and Continental Stock Transfer & Trust Company (“CST”), the trustee of the Trust Account, $ 204,459of interest income from the Trust Account was withdrawn by the Company for the payment of franchise and income taxes.

During the nine months ended September 30, 2023, pursuant to the trust agreement dated as of December 20, 2021 between the Company and Continental Stock Transfer & Trust Company (“CST”), the trustee of the Trust Account, $ 1,171,438of interest income from the Trust Account was withdrawn by the Company for the payment of franchise and income taxes.

A decline in the market value of held -to-maturitysecurities below cost that is deemed to be other than temporary, results in an impairment that reduces the carrying costs to such securities’ fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and the duration of the impairment, changes in value subsequent to year -end, forecasted performance of the investee, and the general market condition in the geographic area or industry in which the investee operates.

Premiums and discounts are amortized or accreted over the life of the related held -to-maturitysecurity as an adjustment to yield using the effective -interestmethod. Such amortization and accretion are included in the “interest income” line item in the consolidated statements of operations. Interest income is recognized when earned.

Effective January 1, 2023, the Company changed its accounting policy for the investments in trust to the fair value method.

At September 30