Company: PFSA
Filing Date: 2025-04-03
Form Type: CORRESP
Source: 0001213900-25-028546
Chunk: 9

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: CORRESP
Chunk 9
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 related to the closing of the APAC Joint Venture and have the following 
 comments:                                                                                            |

| ● | We remind you of your response to comment 5 in your response letter dated March 29, 2024. Specifically                                      
 you agreed to provide an updated response which would more fully explain why you believe the $6 million payment from Tasly represents       
 consideration for the sale of a 60% interest in the JV rather than revenue recognized pursuant to ASC 606. With reference to the specific   
 terms of the JV agreement and the license agreement, please provide us with your analysis. Ensure you identify the authoritative literature 
 you relied on.                                                                                                                              |

| ● | Please disclose the assumptions underlying the assumed fair value of $10 million for the license transferred. |

| ● | Notwithstanding the above bullet regarding the underlying accounting for this transaction, please                                            
 tell us where the $6 million gain is recognized in the pro forma combined statement of operations. Refer to 11-02(a)(6)(B) and Rule 11-02(1) 
 of Regulation S-X.                                                                                                                           |

: The Co-Registrants acknowledge the
Staff’s comment have revised the disclosure on pages 179 and 180 of the Amendment. The Co-Registrants confirm that APAC Joint
Venture documents have not yet been finalized, and as such, the accounting is still pending executed documents.

When considering if the $6 million consideration represents
revenue form a customer or consideration from the sale of 60% interest in the JV management considered specific features of the transaction
such as control being transferred. Management believes that only partial control is being transferred in this agreement and therefore,
the APAC Joint Venture transactions would be scoped out of ASC 606. The license is being shared and partial control is being given but
full control over the license is not being transferred. Accordingly, the income statement impact associated with the difference between
consideration received by the Company and the prior basis of the License and/or business transferred in connection with the APAC Joint
Venture transactions will be recognized as a gain on the partial sale of nonfinancial assets.

PwC’s PPE 6.2.2.1 states: “A counterparty to
a contract would not be a customer if the counterparty has contracted with the entity to participate in an activity or process in which
the parties to the contract share the risks and benefits (such as developing an asset in a collaboration arrangement) rather than to obtain
the output of the reporting entity’s