Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 576

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 576
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 and expenses in the condensed consolidated financial statements and accompanying notes. The Company’s management regularly assesses these estimates, including those related to accrued liabilities, valuation of the convertible debt, and senior notes, valuation allowance for deferred tax assets, and valuation of stock -basedawards. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. The Company’s significant accounting policies are disclosed in Note 2 to the annual consolidated financial statements included in this amendment to Form S -4. Deferred Offering Costs Specific incremental costs, consisting of legal, accounting and other fees and costs, directly attributable to a proposed or actual offering of securities are deferred and charged against the gross proceeds of the offering. In the event of a significant delay or cancellation of a planned offering of securities, all of the costs are expensed. Offering costs capitalized as of September 30, 2024 and December 31, 2023 were $2.0 million and $1.5 million, respectively. Government Grants We receive payments from government entities under non -refundablegrants in support of our product development programs. The grants received fall within two categories: a.Expense Reimbursement Grants — grants in which we are entitled to claim from a government entity reimbursement of certain qualified expenses incurred to date. The nature and amount of such expenses are determined by each respective grant; b.Fixed Fee Grants — grants in which the total amount of the grant is fixed and the disbursements are made based on submission to the grantor of specified deliverables. We have concluded that all government grants received are outside the scope of ASC 606 Revenue from Contracts with Customers, because such grants do not involve a reciprocal transfer in which each party receives and sacrifices approximately commensurate value. Therefore, the grants meet the definition of a contribution and are non- exchange transactions. We have further concluded that Subtopic 958 -605, Not -for-Profit-Entities-RevenueRecognition does not apply to the government grants received, as we are a business entity, and the grants are with governmental agencies or units. In absence of explicit U.S. GAAP guidance on contributions received by business entities, we made a policy decision to apply by analogy recognition and measurement guidance in International Accounting Standard 20 Accounting for Government Grants and Disclosure of Government Assistance (“IAS 20”). Under this approach recognize grants at fair value only when there is reasonable assurance that we will comply with the conditions attaching to them, and that the grants will be received. We recognize as income