Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 109

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging
growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make
comparison of the Company’s condensed consolidated financial statements with another public company, which is neither an emerging
growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because
of the potential differences in accounting standards used.

Use of Estimates

The preparation of these condensed consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements.

Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the condensed consolidated financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future confirming events. Some of the more significant estimates are in connection with
determining the fair value of the warrant liabilities and convertible promissory note. Accordingly, the actual results could differ significantly
from those estimates.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account.

Cash and Cash Equivalents and Restricted Cash

The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. At June 30, 2025 and December 31, 2024, the
Company had $1,751 and $0 of restricted cash, respectively, related to funds withdrawn from the Trust Account reserved for
the payment of income and state franchise taxes. The Company did not have any cash equivalents as of June 30, 2025 and December 31, 2024.

11

Cash Held in Trust Account

At June 30, 2025 and December 31, 2024, substantially
all of the assets held in the Trust Account were held in an interest-bearing demand deposit account at a bank.

During the six months ended June 30, 2025, pursuant
to the trust agreement dated as of December