Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 414

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 414
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ory note is valued using a compound option formula on the convertible feature and a present value of the host contract.
The valuation technique requires inputs that are both unobservable and significant to the overall fair value measurement. These inputs
reflect management’s own assumption about the assumptions a market participant would use in pricing the working capital loan.

<div align='center'>F-93

NORTHVIEW ACQUISITION CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

Note 2 — Significant Accounting Policies (cont.)

Securities Purchase Agreement

The fair value of the Company’s
securities purchase agreement is valued using Monte Carlo models on the convertible feature and a present value of the host contract.
The valuation technique requires inputs that are both unobservable and significant to the overall fair value measurement. The instrument
is subject to re-measurement at each balance sheet date, with changes in fair value recognized in the condensed consolidated statements
of operations.

Warrant Liabilities

The Company accounts for the 17,404,250 warrants
issued in connection with the IPO (the 9,487,500 Public Warrants, the 7,347,500 Private Placement Warrants, and the 569,250 Representative
Warrants inclusive of the underwriters’ over-allotment option) in accordance with the guidance contained in ASC 815-40.
Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded
as a liability. Accordingly, the Company has classified each warrant as a liability at its fair value. This liability is subject to re-measurement at
each balance sheet date. With each such re-measurement, the warrant liabilities will be adjusted to fair value, with the change in fair
value recognized in the Company’s condensed consolidated statements of operations (See Note 8).

In determining the fair value
of the Private Placement Warrants and the Representative’s Warrants, assumptions related to expected share-price volatility, expected
life and risk-free interest rate are utilized. The Company estimates the volatility of its common stock based on historical volatility
that matches the expected remaining life of the warrants.

Net Loss Per Common Stock

The Company has two categories
of shares, which are referred to as common stock subject to possible redemption and common stock. Earnings and losses are shared pro rata
between the two categories of shares. The 17,404,250 potential shares of common stock for outstanding warrants to purchase the
Company’s shares were