Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 139

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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also contributed to a buildup of financial vulnerabilities. With inflation at multi-decade highs, monetary authorities in advanced economies
are accelerating the pace of policy normalization. Policymakers have continued to tighten policy against a backdrop of rising inflation
and currency pressures, albeit with notable differences across regions. Global financial conditions have tightened notably this year,
leading to capital outflows. Amid heightened economic and geopolitical uncertainties, investors have aggressively pulled back from risk-taking
and adjusted their investment preferences generally. Key gauges of systemic risk, such as higher dollar funding costs and counterparty
credit spreads, have risen. There is a risk of a disorderly tightening of financial conditions that may be amplified by vulnerabilities
built over the years.

In addition, our business, growth, financial condition or results of
operations could be materially adversely affected by instability or changes in a country’s or region’s economic conditions;
inflation; changes in laws or regulations or in the interpretation of existing laws or regulations, whether caused by a change in government
or otherwise; increased difficulty of conducting business in a country or region due to actual or potential political or military conflict;
or action by the U.S. or foreign governments that may restrict our ability to transact business in a foreign country or with certain foreign
individuals or entities. A possible slowdown in global trade caused by increasing tariffs or other restrictions could decrease consumer
or corporate confidence and reduce consumer, government and corporate spending in countries inside or outside the U.S., which could adversely
affect our operations. Climate-related events, including extreme weather events and natural disasters and their effect on critical infrastructure
in the U.S. or internationally, could have similar adverse effects on our operations, users, or third-party suppliers.

8

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

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”).

Unaudited Interim Financial Information

The interim unaudited condensed consolidated financial statements have
been prepared on the same basis as the annual audited consolidated financial statements and in accordance with the rules and regulations
of the SEC. In the opinion of management, the interim unaudited financial statements reflect all adjustments, which include only normal
recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2025, the results
of its operations and changes