Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 320

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 320
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 by ASU No. 2025-01, Income Statement — Reporting
Comprehensive Income — Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years
beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early
adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, the Company
does not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole.

Note 3 — Fair Value Measurement

Assets and liabilities recorded
at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used
to measure their fair values. Fair value represents the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize
the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes
a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

| Level 1 — | Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;                                                                                                                                                                                                                                                         |
| Level 2 — | Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and |
| Level 3 — | Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.                                                                                                                                                                                                                  |

In determining fair value,
the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the
extent possible as well as considers counterparty credit risk in its assessment of fair value.

Assets and liabilities measured
at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The
Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management
to make judgments and consider factors specific to the asset or liability. As of June 30, 2025 and December 31, 202