Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 717

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 717
---
  
    Significant Other Observable Inputs (Level 2)  
    Significant Other Unobservable Inputs (Level 3) 
  
    Assets: 

    Cash and marketable securities held in trust 
    $10,873,406  
    $10,873,406  
    $     —  
    $— 
  
    Liabilities: 

    Warrant liabilities – Public Warrants 
    $85,388  
    $85,388  
    $—  
    $— 
  
    Warrant liabilities – Private Placement Warrants 
     66,128  
     —  
     —  
     66,128 
  
    Warrant liabilities – Representative’s Warrants 
     5,123  
     —  
     —  
     5,123 
  
    Convertible promissory note 
     944,118  
     —  
     —  
     944,118 
  
    Total 
    $1,100,757  
    $85,388  
    $—  
    $1,015,369 

The
Public Warrants, the Private Placement Warrants and the Representative’s Warrants were accounted for as liabilities in accordance
with ASC 815-40 and are presented within liabilities on the consolidated balance sheets. The warrant liabilities are measured at fair
value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities
in the consolidated statements of operations.

The
Company utilized a Monte Carlo simulation model for the initial valuation of the Public Warrants. The subsequent measurement of the Public
Warrants at December 31, 2024 was classified as Level 2 due to the lack of an active market. At December 31, 2023, the Public Warrants
was classified as Level 1 due to the use of an observable market quote in an active market. As of December 31, 2024 and 2023, the aggregate
value of Public Warrants was $379,500 and $85,388, respectively.

The Company uses a Monte Carlo simulation model
to value the Private Placement Warrants and the Representative’s Warrants. The Private Placement Warrants and the Representative’s
Warrants were classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. Inherent in pricing models
are assumptions related to expected share