Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 616

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 616
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 of directors can elect all of the directors (prior
to consummation of the initial Business Combination). The Company’s stockholders are entitled to receive ratable dividends when,
as and if declared by the board of directors out of funds legally available therefor.

Note
8 – Fair Value Measurements

Fair
value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction
between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The Company’s financial
instruments are classified as either Level 1, Level 2 or Level 3. These tiers include:

●Level
1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●Level
2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices
for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●Level
3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

F-19

The
following tables present information about the Company’s assets and liabilities that are measured at fair value on December 31,
2024 and 2023, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

    December 31, 2024  
    Quoted Prices In Active Markets (Level 1)  
    Significant Other Observable Inputs (Level 2)  
    Significant Other Unobservable Inputs (Level 3) 
  
    Assets: 

    Cash and marketable securities held in trust 
    $8,330,835  
    $8,330,835  
    $—  
    $— 
  
    Liabilities: 

    Warrant liabilities – Public Warrants 
    $379,500  
    $—  
    $379,500  
    $— 
  
    Warrant liabilities – Private Placement Warrants 
     293,