Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 35

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 interest rate.
The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the
loans payable. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar
to the expected remaining life of the loans. The expected life of the loans are assumed to be equivalent to their remaining contractual
term.

19

The key inputs into the Monte Carlo simulation model for the Loan Payable
- Related Party were as follows at September 30, 2025 and July 11, 2025:

    September 30, 
2025  
    July 11,
 2025 
  
    Input 

    Risk-free interest rate 
     3.66% 
     4.00%
  
    Expected term (years) 
     1.28  
     1.50 
  
    Expected volatility 
     72.6% 
     82.70%
  
    Fair value of Common stock 
    $0.30  
    $2.50 

The following table provides a summary of the changes in the fair value
of the Company’s Level 3 related party loan payable for the three and nine months ended September 30, 2025 (in thousands):

    Loans
 payable - related
 party 
  
    Fair value as of January 1, 2025 
    $— 
  
    Assumption of convertible note upon closing of the Business Combination 
     3,898 
  
    Proceeds Received 
     11,000 
  
    Repayments of debt 
     (610)
  
    Loss on change in the fair value of related party convertible debt 
     71 
  
    Fair value as of September 30, 2025 
    $14,359 

Note 5 — Balance Sheet Components

Prepaid expenses and other current assets (in thousands)

    As of
 September 30,
 2025  
    As of
 December 31,
 2024 
  
    Prepaid legal 
    $    -  
    $ 25 
  
    Prepaid insurance 
     141  
     37 
  
    Prepaid other 
     73  
     7 

    $214  
    $69 

Accrued Liabilities (in thousands)

    As of
 September 30,
 2025  
    As of
 December