Company: PFSA
Filing Date: 2025-08-25
Form Type: 424B3
Source: 0001213900-25-080387
Chunk: 158

Company: Profusa, Inc.
Filing Date: 2025-08-25
Form: 424B3
Chunk 158
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 increase as we increase staffing to support product development, continue our clinical trials, build prototypes, and continue to explore and develop next generation technologies. General and Administrative Expenses General and administrative expenses consist of personnel expenses, including salaries, benefits, and stock -basedcompensation, related to executive management, finance, legal, human resource functions, and business development, contractor and professional services fees, audit and compliance expenses, insurance costs and general corporate expenses, including allocated facility -relatedexpenses and information technology costs. Loss on Change in the Fair Value of Tasly Convertible Debt We elected to apply fair value option to account for the convertible loans issued between June 2023 and March 2024 (the “Tasly Convertible Debt”), under which none of the embedded conversion or redemption features were bifurcated and separately accounted for. Rather, the Tasly Convertible Debt in its entirety was recorded at fair value at inception and is subject to remeasurement to fair value at each balance sheet date, with the change in fair value reflected in the statements of operations and comprehensive loss. 101

Gain on PPP Loan Forgiveness On April 16, 2020 and May 25, 2021, we borrowed $1.2 million (the “PPP Loan 1”) and $1.3 million (the “PPP Loan 2”), respectively, as a Paycheck Protection Program loan (together the “PPP Loans”). The Paycheck Protection Program, established as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, provides for loans to qualifying businesses and is administered by the U.S. Small Business Administration (the “SBA”). The annual interest rate of the PPP Loans is 1%. The PPP Loans are eligible for forgiveness, provided the borrower has met the respective forgiveness requirements, has timely submitted an application for forgiveness and the forgiveness has been granted by the SBA. PPP Loan 1 has been approved for loan forgiveness, and management intends to apply for PPP Loan 2 forgiveness in 2025. PPP Loan 2 is currently in default due to non -payment, and is classified as a current liability on the balance sheet. Interest Expense Interest expense consists primarily of the interest on our convertible notes, senior notes, Tasly convertible debt, and PPP Loans. Other Income Other income consists primarily of income earned from sale of equipment and a short -termsublease of a portion of our facilities. Results of Operations Comparison of the Three months ended June 30, 2025 to the Three months ended