Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 170

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 170
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 Purchase Agreement,
from time to time after the date of this prospectus and during the term of the Purchase Agreement. Sales of Common Stock by us to Ascent
under the Purchase Agreement, and the timing of any such sales, are solely at our option, and we are under no obligation to sell any securities
to Ascent under the Purchase Agreement. See the section titled “The Committed Equity Facility” in this prospectus for
more information. As of August 27, 2025, approximately $0.9 million in shares of our Common Stock was sold pursuant to the Purchase Agreement.

Principles of Accounting and Consolidation

The accompanying condensed
consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States
of America (“U.S. GAAP”) and pursuant to applicable rules and regulations of the Securities and Exchange Commission (“SEC”)
and include all adjustments necessary for the fair presentation of the Company’s financial position as of June 30, 2025, and
June 30, 2024 and the results of operations and cash flows for the three and six month periods then ended. The accompanying condensed
consolidated financial statements include the accounts of Profusa Inc. and its wholly owned subsidiary, APAC. All intercompany balances
and transactions have been eliminated in consolidation.

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Components of Results of Operations

Government Grant Revenue

Government grant revenue consists
of amounts we earn under grants from two government agencies: NIH and DARPA. These grants are provided either in the form of expense
reimbursement (expense reimbursement grants) or on a fixed fee basis (fixed fee grants). Under the expense reimbursement grants the government
agencies reimburse us for a portion of our expenses (allowable expenses) that have been incurred in a given period on the basis of reports
that we provide to these agencies. Fixed fee grants are awarded for specific research and development programs undertaken by us. Under
these grants we receive milestone payments from the government agencies upon our submission and approval by the government of agreed upon
deliverables, consisting primarily of the documented results of the specific research and development programs.

Research and Development Expenses

Research and development expenses
consist primarily of personnel expenses, including salaries, benefits, and stock-based compensation, costs of consulting, supplies, depreciation
and amortization and allocations of facility- related expenses. We expect our research and development expenses to increase as we increase
staffing to support product development, continue our clinical trials,